"You need to take this next evolution in the communication strategy pretty much on its terms," Poole said. "What's appropriate to read into it you and I won't know until we have some experience with it," and that could take years.
Poole cautioned observers that under the new strategy, "there needs to be a lot attention paid not so much to the forecast itself but how it has changed from the previous forecast, and what are the events that led to that change." Because future economic events are so frequently surprising, what's more important is that observers use the forecasts to divine the pattern by which central bankers react to data.
"We can't tell you what we are going to do because we can't predict the information that is going to determine what we are going to do," Poole said. But, "over time these quarterly updates to the outlook will enable analysts to connect the change in the outlook to the change in the policy stance," Poole explained.
As reported by Dow Jones News