WASHINGTON — Incoming Federal Reserve Chair Kevin Warsh has suggested scaling back the release of transcripts from the U.S. central bank’s policy meetings, arguing that the current practice discourages the candid debate needed for effective monetary policymaking..
Reuters reported that Warsh made the remarks during a 2023 interview with New York University Stern School of Business professor Simon Bowmaker for the forthcoming book “Fed Reckoning: Conversations on America’s Central Bank.”
Warsh, a former Fed governor who served from 2006 to 2011, said policymakers often temper their comments because meetings are recorded and transcripts are released publicly after a five-year delay, Reuters reported. He proposed limiting recordings and transcripts to the final “decision round” of policy discussions, allowing earlier conversations to remain private and more free-flowing.
“The tape recorder, however, still looms large at the Federal Reserve,” Warsh said, according to Reuters. “If we want that deliberation to be robust, we need a family fight.”
What Change at Bank of England Demonstrated
Reuters reported that Warsh pointed to work he conducted for the Bank of England in 2014 that led the institution to stop recording the initial round of policy discussions while continuing to release transcripts of final-day proceedings. He argued that the Fed should adopt a similar approach to encourage stronger debate among policymakers.
The Fed has released full transcripts of its two-day policy meetings since the early 1990s as part of broader transparency reforms following controversy over previously undisclosed recordings and transcripts of meetings dating back to the 1970s.
Former Fed Vice Chair Donald Kohn told Reuters that while the release of transcripts may have reduced spontaneity, the records remain important for historical purposes and for producing accurate meeting minutes. Reuters also reported that some analysts believe reducing transparency could increase market volatility and revive suspicions about the Fed’s decision-making process.
Criticism of Other Practices
Reuters said Warsh has also criticized other Fed communications tools, including quarterly economic projections and the frequency of press conferences held after policy meetings. During his Senate confirmation hearing last month, Reuters reported, Warsh did not rule out reducing the number of Fed meetings each year.
