Narayana Kocherlakota was president of the Federal Reserve Bank of Minneapolis (from 2009 to 2015)

He has a blog, but this is from a piece he wrote for Bloomberg. There are a few points in it to note for those who listen to, read and ponder speeches from various Fed officials.

Kocherlakota points out what he says is an important flaw in the way the world's most powerful central bank communicates.

That is:

  • Fed officials give a lot of speeches
  • But, as they always say, they don't speak on behalf of the Federal Open Market Committee

Got that? When a Fed President, or other official, speaks, it is his or her own opinion you are hearing, they are not permitted to say what it is others are thinking nor their policy prescriptions.

K goes on:

  • Only one official, Fed Chair Janet Yellen, has the authority to speak on the committee's behalf

Something to remember. When a Fed speaker says something, its his or her opinion only.

There is more at the piece, here (ungated).