Bernanke's legacy will include more communication than his predecessors

It seems like Ben Bernanke believes the old saying, “Knowledge is power.” When his term as leader of the Federal Reserve is up in January 2014, one of the things people will remember most about him is his willingness to disseminate more information to the public than any of his predecessors (source).

Want examples? He’s called press conferences to explain the rationale behind the Fed’s decisions. In addition, a communication program entitled “forward guidance” was enacted in order to enhance public knowledge of the Fed’s goal of keeping interest rates low for the foreseeable future.

That being said, sometimes too much knowledge is no longer power and, in fact, can lead to confusion or misreads. For example, because the Fed schedules press conferences after half their eight annual meetings, anticipation becomes higher for the particular meetings that will be followed by the conferences.

There are also mixed signals when it comes to unemployment and the economy, as the economy isn’t growing at a fast enough rate to go along with the growth of the job rates. And despite all this, only 59% of Americans currently have jobs – the lowest number in nearly 30 years.

What will happen in the future? Really it’s anyone’s guess. Not only does Bernanke’s term end, but at least four other high-ranking Fed positions could be occupied by others. Bernanke’s position could be taken by Vice-chair Janet Yellen, but if someone else gets it, will she want to stay? Meanwhile, Elizabeth Duke is retiring, Jerome Powell’s term is also up in January, and Sarah Bloom Raskin may be moving to the Treasury Department. In addition, Cleveland Fed leader Sandra Pianalto has also resigned.

The next leader may be expected to be just as communicative as Bernanke and his staff has been. But one thing’s for certain: When it comes to communications and overall public relations, Bernanke has taken the Fed into new horizons.