Fed Chairman Ben Bernanke has agreed to hold regular news conferences.
To those of you who can't contain your enthusiasm and relish the thought of spending an evening being mesmerized by Helicopter Ben's scintillating economic wizardry, he will be holding these press conferences every three months.
I sense a disaster waiting to happen. Personally, I can't wait to see it.
Fed Chairman are supposed to act like children. They are to be seen and not heard. The more central bankers open their mouths, the more foolishness comes out and the markets respond with false volatility over the confusion.
For a recent example of this phenomenon, check out New York Fed President William Dudley's comments this month to a gathering in Queens, New York.
When asked about radically rising food and commodity price inflation and why the Fed for no good reason uses a "core inflation" rate rejected by virtually every other central bank around the world, Dudley responded this way:
"Today you can buy an iPad 2 that costs the same as an iPad 1 that is twice as powerful. You have to look at the prices of all things."
The audience that heard this nonsense sat in stunned disbelief.
"I can't eat an iPad" replied one angry observer.
Another asked if Dudley has ever gone grocery shopping.
You can click on the link above to see Bernanke when he recently appeared on the CBS show 60 MINUTES, his first major public interview in TWENTY YEARS.
His appearance is regarded as a disaster. Here is one substantive review worth reading.
Here is another review that called Bernanke's performance and his lame defense of his QEII policy "desperate" and I agree. It showed. Central bankers are not supposed to sweat while talking about how well they are managing the currency. It sends the wrong signal to the markets.
I applaud Ron Paul's efforts to get some transparency at the Fed. He's on the right track. Seeing Helicopter Ben peppered by reporter questions he likely can't answer every ninety days sounds like fun but watch out for added stock and bond market volatility which inevitably will be caused when the world slowly realizes Bernanke honestly doesn't know what he is talking about.
To quote Margo Channing:
"Fasten your seatbelts, it's going to be a bumpy night."