Federal Reserve System, Public finance, Inflation

Decisions made by the financial markets are generally based on the monetary policies that are disclosed by the Federal Reserves Federal Open Market Committee or FOMC (Ehrmann et al 2007). In the past Central Bankers have traditionally been close-mouthed and the Federal Reserve was often reluctant to state publicly what its current policy directive is what its idea about future monetary policy actions including its predictions in relation to general economic conditions or interest rates (Ehrmann et al 2007). Hence periodic or regular publications may provide some detailed analysis of monetary policies for the preceding moths or years but does not divulge any information details regarding current of future polices.