The Fed Adopts a Communications Policy

For the first time in its nearly 100-year history, the Federal Reserve has adopted a more transparent communications policy – on April 27th, 2011 Fed Chairman Ben Bernanke is scheduled to conduct his first of what will be regularly scheduled quarterly press conferences.

Some have expressed concern that by venturing out of dimly lit conference rooms, the Fed Chairman’s good intentions could backfire. After all, the press conference format cedes the ability to absolutely control one’s message. Indeed, some of the most memorable press briefings are remembered only because the messenger failed so miserably under the glare of television cameras. (Former U.S. Secretary of State Alexander Haig learned this lesson the hard way.)

The near-collapse of our economy just two short years ago cost taxpayers trillions of dollars. Thus one can understand why business leaders, policy makers and even the public continues to seek reassurances that someone perceived as apolitical is charting a monetary course forward.

Mr. Bernanke should be applauded for deciding to step-up to the microphone and brave a scrum of reporters. Transparency requires two-way communication.

Professional business communicators know how daunting it can be to confidently, crisply and accurately convey complex fiscal issues. But with proper preparation, a deliberative messaging strategy and clear point of view, Mr. Bernanke has an opportunity to prove that a Fed Chief can be both a preeminent economist, as well as a strategically effective communicator.

Written by: Michael Riley