WASHINGTON — Federal Reserve Chairman Ben Bernanke will begin holding news conferences four times a year to answer questions about the Federal Reserve’s policy decisions. It represents a significant shift in strategy for the central bank, one that will give it a chance to defend actions that in recent months have faced harsh criticism.
The decision, which was announced Thursday, comes after the Fed held an unusual videoconference last fall in large part to discuss the need to improve its communications with the public. A Fed committee also had been studying whether to begin holding periodic news conferences.
Bernanke’s first news conference will be held after the Fed’s April 27 meeting. That will augment the current communications strategy: a brief statement after each of the Fed’s eight policy-making meetings with no officials available for questions.
It’s a notable change for the Fed. Its chairmen rarely take questions from reporters, and when they do, they are often guarded in their answers. The Fed chief’s words are closely watched by investors and have the potential to greatly move markets. But the central bank has faced tough criticism, primarily from Republicans, for being too secretive and failing to provide timely information on its actions during the 2008 financial crisis. In recent months, lawmakers also have questioned the Fed’s decision to boost the economy through the purchases of $600 billion in Treasury bonds.
Bernanke has responded to the criticism by giving interviews with “60 Minutes” and holding a rare news conference at the National Press Club last month. Regular news conferences would be a marked change.
