Fed Chair Powell Forms Five Working Groups to Review Communications, Data Sources on June 18

According to Jin10, Federal Reserve Chair Powell announced on June 18 that he is establishing five working groups to review the Fed's communication methods, the data sources relied upon in policy decisions, and the framework for assessing inflation. The Fed's June policy statement contained no forward guidance, a term referring to explicit signals about future policy direction.

Diane Swonk, chief economist at KPMG, noted that establishing the working groups indicates Powell is seeking consensus rather than pushing through reforms by decree. Powell previously criticized forward guidance and quarterly economic projections, arguing they could lock the Fed into a specific interest rate path.