Federal Reserve Bank Of San Francisco Accurately Sees The Future

Take a look at this new website just launched by the Federal Reserve Bank of San Francisco called "the Economy: Crisis & Response," and then admit to yourself that the world has changed in ways that were unimaginable not that long ago. (The images below are from the site.)

At least some of the many part of the Federal Reserve system -- the Board of Governors and the regional banks -- have obviously realized that they are going to have to communicate differently than they have in the past.  Not only are the system's actions being being scrutinized and criticized more often by a wider group of people than perhaps at any other time in its history, but the board and banks may well be given much broader roles in the new financial regulatory scheme being developed that will require them to talk more often to different audiences than they have ever talked to before.

And given it's new visibility and political vulnerabilities, whenever it happens the Fed is going to have to defend why it is raising interest rates to many more people than it has in the past.

In other words, the time for Greenspanspeak -- oracle-like, technical pronouncements  from on high that seem to say a great deal without really saying much of anything -- may have to come to an end.  At the very least, they are now  likely to be supplemented with communications that are far more accessible and readable than what the Fed typically has done in the past.

What's most remarkable about the San Francisco bank's new website is it's nontechnical orientation.  It will take you to staff reports and other studies that only an economist could love, but the information initially is provided in a way that an interested and concerned nonexpert will be able to appreciate.  Also note the very clean and easy-to-use design.

The Fed will have to do more of this in the months ahead. If it gets any of the consumer financial regulatory authority it is seeking, it will need to do much more.