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1LHE FEDERAL RESERVE System has been criticized often for the secrecy that surrounds monetary policy. In particular, many observers have questioned the desirability of the Fed’s practice of not disclosing the decisions of the Federal Open Market Committee (FOMC) immediately following its meeting. This criticism has been heightened recently by legislation introduced in the House of Representatives, proposing, among other things, that the Fed release the contents of the FOMC’s directives immediately after each meeting rather than with a sevenweek delay.1

Strategic Considerations in Monetary Policy with Private Information: Can Secrecy Be Avoided?