Kevin Warsh wants the U.S. central bank to talk less. But is silence really golden for the economy? Host Carmel Crimmins talks to Federal Reserve correspondent Howard Schneider and European Central Bank correspondent Balazs Koranyi about keeping policy debates behind closed doors and letting the markets figure things out for themselves. Sign up for the ⁠⁠⁠Reuters Econ World ⁠⁠⁠newsletter⁠⁠⁠⁠⁠ Catch Reuters Morning Bid ⁠⁠⁠here⁠⁠⁠ For information on our privacy and data protection practices visit the Thomson Reuters Privacy Statement. Learn more about your ad choices. Visit megaphone.fm/adchoices Further Listening:⁠ Trump&#x27;s inflation problem⁠⁠ Kevin Warsh’s policy trap Kevin Warsh: Can he deliver a Fed overhaul? Our Standards: The Thomson Reuters Trust Principles. Learn more about your ad choices. Visit megaphone.fm/adchoices

Fed talk

Reuters Econ World

# Full Transcript

**Podcast:** Reuters Econ World

## Participants

- **Carmel Crimmins** (Reuters)
- **Howard Schneider** (Reuters)
- **Balazs Koranyi** (Reuters)

## Transcript

Communication can be a tricky business. Words and phrases can be misconstrued. Context can change. It's a bit of a minefield, particularly if you're a central banker. What you say can move financial markets, affect how businesses and consumers behave, putting billions of dollars on the line.

Kevin Warsh, the new chair of the Federal Reserve, wants the US Central Bank to talk less. He's already made some big changes. Shorter statements, no more forward guidance. That's central bank speak for telling people what they plan to do with interest rates. And there's more to come. He's launched a full review of how the Fed communicates. You could call it a silent revolution.

But is less talk a good thing for central bankers? What are the risks of keeping quiet, particularly for the world's most important central bank? Let's try and find out. I'm Carmel Crimmins and this is Reuters Econ World. Every week we go deep on the economic principles and ideas, driving the biggest news around the world. On this week's show, FedTalk.

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When it comes to human communication, central bankers are a special breed. They use language as an actual policy tool to steer the economy. The idea is to shape expectations about where the economy is going without causing panic. So the language can be technical, jargony, highly stylised. A missing phrase or word can mean a major policy shift with billions of dollars riding on it. And decoding it is a science all of its own.

So I'm happy today to say we've two world experts in interpreting central bank communication. That's Howard Schneider, our Federal Reserve correspondent, and Balash Karani, our chief correspondent for the European Central Bank. Hey, Howard. Hey, Balash. How's it going? Carmel, you know, you're brilliant that we've had hawks and doves on inflation for all these decades. And now we've got peacocks, elephants and wolves or dogs to describe communications policy. It's a whole new continuum and way to describe these guys. Thank you, Howard.

Howard and Balash, you are both veterans of plenty of central bank meetings. How many do you think you've sat on? Oh gosh, a hundred or more. Well, last week was my 90th, but it's not like I'm counting....

Fed talk

Transcript

Built for investment professionals

Every day you wait, your competitors are finding
edge in conversations you're not hearing.

Fed talk

Transcript

Built for investment professionals

Every day you wait, your competitors are findingedge in conversations you're not hearing.

Every day you wait, your competitors are finding
edge in conversations you're not hearing.