The Federal Reserve will issue more detailed reports twice as often, Ben Bernanke announced today. Starting next Tuesday, the Fed will release projections for inflation, GDP, and unemployment four times a year, accompanied by a “narrative” telling investors what the Fed is thinking. Bernanke also said he’d be looking at overall inflation from now on, not just the gas- and food-free core rate.
While Bernanke said core inflation was still a useful statistic, “ultimately, households and businesses care about the overall...rate.” The new reports stop short of providing an explicit inflation target, as several other countries’ central banks do. Bernanke is a known fan of the practice, but said it wasn’t “suited to the Federal Reserve’s mandate.”