[Imagine Bernanke's Blog, The Fed's Facebook page or Ben tweeting? Will social media make the Fed a household name? JD]
The Federal Reserve has lately been in the news almost as much for how it makes and communicates its decisions as for the decisions themselves.
Beginning with the announcement that it will hold four press conferences per year in order to more clearly communicate the decisions of the Federal Open Market Committee (FOMC), the Fed has promised to “continue to review its communications practices in the interest of ensuring accountability and increasing public understanding.”
To a greater extent than one might have predicted, the Fed kept its promise by ending the year with the announcement that it’s venturing into the social media fray. In late September, The Federal Reserve Bank of New York (FRBNY) invited companies specializing in “sentiment analysis” the chance to bid on a contract for creating a system to monitor what people are saying about the Fed online....