Question

Which statement best describes the Federal Reserve's current level of transparency to the American public?

The actions of the Fed are largely carried out in secrecy with little regard to public transparency.

The Fed is somewhat transparent with regard to some aspects of monetary policy, but does not disclose details regarding macroeconomic conditions and goals.

The Fed only reports to the American public during periods of economic slow down.

The Fed is extremely transparent with regard to monetary policy and discloses goals, targets, and predictions for the macroeconomy.

Answer 1

Answer:

The Fed is extremely transparent with regard to monetary policy and discloses goals, targets, and predictions for the macroeconomy.

Explanation:

Answer 2

Answer:

d. The Fed is extremely transparent with regard to monetary policy and discloses goals, targets, and predictions for the macroeconomy.

Explanation:

"The Fed is extremely transparent with regard to monetary policy and discloses goals, targets, and predictions for the macroeconomy" statement best describes the Federal Reserve's current level of transparency to the American public.

Before Alan Greenspan headed the Federal Reserve (beginning in 1987), the activities, goals, and outcomes of the Fed were largely secret. By the 1990s, the Fed was disclosing explicit information about interest rates, targets, and macroeconomic goals. This includes a variety of forecasts and predictions for many key macroeconomic indicators.