Federal Reserve Opens a Window on its Operations
The Federal Reserve Board added some sunshine to the way it operates by providing a new section on its website. Described as “…expanding the information provided about the policy tools…” it uses to deal with the financial crisis.
The Obama administration has, from its beginning a few weeks ago, indicated that it would promote openness and transparency in dealing with any rescue effort taken by the government. The new web section initiated by the Federal Reserves seems to be in keeping with that promise.
One of the criticisms of the way in which the previous administration controlled the Troubled Asset Relief Funds (TARP) approved by Congress and implemented by the Treasury Department, has been the lack of oversight and information regarding the way the funds were being used. Given the level of information that the Fed is now proving on its web site would seem to be an effort to deflect any such criticism that could be directed to the Federal Reserve.
The following is an extract from the press release issued this morning:
The website section--“Credit and Liquidity
Programs and the Balance Sheet”--presents a wide range of material, including a
detailed explanation of the Federal Reserve's balance sheet; descriptions of
all of the Federal Reserve's liquidity and credit facilities; discussion of the
Federal Reserve's risk-management practices; information on the types and
amounts of collateral being pledged at the various lending facilities; and an
extensive set of links to congressional reports and other resources.
"This new section of our website is one of a
series of significant steps we have taken to improve the public's understanding
of our actions during this extraordinary period," said Federal Reserve
Chairman Ben S. Bernanke.
"We are continuing to review our disclosure
policies relating to our balance sheet and lending policies. Our goal is
to be as transparent as possible, both to ensure that the Federal Reserve is
accountable to the Congress and the public, and because many of the Board's
policies are likely to be more effective if they are well understood by the
markets and the public."
The new section of the Board's website can be
accessed at: http://www.federalreserve.gov/monetarypolicy/bst.htm