MNI BRIEF: Fed's Logan Suggests Changes To SEP, QE Comms

The Federal Reserve has room to improve its communications by conveying the diversity of views among FOMC officials about the path of interest rate and balance sheet policies, including clear distinctions between monetary and financial stability policy, Dallas Fed President Lorie Logan said Monday. 

"First, I think our communications could do more to convey the diversity of views in the FOMC, as well as the uncertainty that we have about the economic environment," she said in Q&A at a Bank of Mexico conference. "The median policy path in the Summary of Economic Projections gets a lot of attention, too much attention." 

"I think that that conversation is likely to begin." (See: MNI INTERVIEW: Limits To Comms Benefits From Fed Scenarios) 

"Second, there are opportunities to enhance how we we talk about balance sheets," Logan said, suggesting that asset purchases could be more impactful in attainting their goals when they're well understood. "We can really clearly communicate the factors behind them. So I think we can examine how the SEP or other vehicles might provide additional information about their purpose and their calibration so that it's clear to the public."