MacroScope

Hints of internal Fed divisions on Twitter?

June 19, 2012

Additional reporting by Ann Saphir. Updated with New York Fed and other details.

For a central bank that prides itself on transparency, the Federal Reserve remains cautious about adopting new ways of communicating its message. The Fed’s Washington-based board was a latecomer to Twitter. Its first tweet was dated March 14, well after its regional Fed counterparts.

Perhaps more tellingly, the @FederalReserve account follows most – but not all – regional Fed accounts. Of the 12 district banks, only the two most hawkish (and therefore likely to oppose the Fed’s unconventional monetary policy) are missing: Richmond and Kansas City. The third is New York, whose heavy influence on financial markets sometimes puts it at odds with the board. In fairness, the board does follow the Dallas and Philadelphia Feds. Its presidents, Richard Fisher and Charles Plosser, have also criticized Fed purchases of government and mortgage bonds, known as quantitative easing or QE.

The feeling is mutual, it seems. Richmond and Kansas City do not follow the board either. New York, however, does.

Are we reading too much into this? Probably. It is just a little bit curious? We think so.

 

Post Your Comment

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/