Think back to where you were during the Enron scandal. It has been eleven years since the day that scandal broke, and we’ve come a long way in terms of the transparency expected from corporations and the ethics of financial management. But now here we are in 2012, and still the nation’s largest financial institution, The Federal Reserve, is perhaps the least transparent of all—until now.
Federal Reserve Vice-Chair Janet Yellen, who is rumored to be Ben Bernanke’s successor as the Federal Reserve Chair in 2014, delivered a speech at the University of California this week focusing on the Fed’s efforts to improve their communications strategies. She emphasized the increasingly familiar term of Forward Guidance, which she defines as “communications about the future course of monetary policy”.
Part of what has driven this generation’s push for transparency is the ease with which we can now exchange information and ideas. It has become a public relations staple to ensure that a company collects feedback from all its employees—top to bottom, as well as its stakeholders—to really understand how to overcome obstacles and grow as a unit. Ms. Yellen is pushing for something similar at the Federal Reserve.