Bernanke will hold regular press briefings

The Federal Reserve is continuing to crank up its public outreach,
announcing Thursday that Fed Chairman Ben Bernanke will begin holding
quarterly press briefings to discuss policy decisions.

The news marks a distinct departure for the once-cryptic Fed. The central bank has weighed mounting a more public defense of its actions as Republicans have become more vocal in their critiques of the independent institution.

{mosads}”The introduction of regular press briefings is intended to further enhance the clarity and timeliness of the Federal Reserve’s monetary policy communication,” the Fed said in a statement. “The Federal Reserve will continue to review its communications practices in the interest of ensuring accountability and increasing public understanding.”

After the Federal Open Market Committee unveils its policy decisions — including determinations on interest rates and its quantitative easing efforts — Bernanke will hold live press briefings that will be broadcast online.

Bernanke held a rare press conference in January at the National Press Club, and sat down in December for an interview with CBS’s “60 Minutes.” Recent minutes from Fed meetings have indicated that officials have discussed whether the chairman should hold regular press briefings.

The Fed has come under a new round of criticism in recent months, centered around its decision to embark on a second round of quantitative easing. That program, dubbed “QE2,” has the Fed buying up $600 billion in Treasury securities, in an attempt to lower long-term interest rates and spur private lending.

However, critics, including several congressional Republicans, have come out against the program, arguing it will simply lead to inflation. The Fed has repeatedly said that it would regularly review the program, but so far has stuck to its guns, staying on schedule to complete the purchases at the end of June.

GOP lawmakers have mounted a more active attack on the Fed in recent months, having introducing bills that would rein in the Fed’s mandate. Republicans  have also installed Rep. Ron Paul (R-Texas), a vocal critic of the Fed, as the chairman of the House committee that oversees the nation’s monetary policy.