Policy reps. discuss media coverage

Journalists had the tables turned on them yesterday as their coverage of monetary policy was critiqued and discussed by the people they write about every day.

Representatives from four major publications met with individuals from major financial institutions in the Rackham Amphitheater to discuss ways to improve coverage of economic issues in the United States and abroad.

One of the central issues debated was accessibility to information about the Board of Governors of the Federal Reserve System, the body that controls the country's monetary policy.

David Wessel, chief economic correspondent for The Wall Street Journal, said the closed meetings and refusal of members of the board to discuss policy keeps him from accurately reporting all the actions of the Fed.

"We are unable, by the current method, to describe what the Fed is arguing about," Wessel said. Fed Chair Alan "Greenspan should take questions from the press."

MALLORY S.E. FLOYD/Daily Michelle Smith, of the U.S. Department of Treasury speaks to former Public Policy Dean Edward Gramlich, a member of the Federal Reserve Board, at a panel in Rackham Amphitheater yesterday.

The Fed currently releases the minutes of meetings six weeks after the fact and announces the results of the meetings right after the decisions are made. But members of the board are reluctant to discuss any sort of policy.

Former University Public Policy Dean Edward Gramlich, now a member of the Board of Governors of the Federal Reserve system, said a certain amount of privacy is required for the Fed to complete their duties.

"None of us are against transparency, but it becomes hard to (make policy) if the glare is too bright," Gramlich said.

The Fed has opened some doors for reporters during the Greenspan era, Gramlich said.

"The Fed has made a lot of changes in the last few years," Gramlich said. "We would like to be open."

Wessel said it is obvious why the Fed has to meet in closed session, but that he is not sure why the Fed discussed some other issues behind closed doors.

"It's not obvious to me why the Fed doesn't explain why they didn't move interest rates," Wessel said. "It's not obvious to me why the chairman doesn't sit down with the 20 or so reporters that cover the Fed and have an on the record interview."

Zanny Beddoes, economic correspondent for The Economist, said her concern is with the Fed's plan for future monetary policy.

"The goal of the Fed is not made clear," Beddoes said.

The current Asian economic crisis has afforded many reporters an opportunity to show skills in covering monetary policy.

Klas Bergman, chief of media relations for the World Bank, said he has been impressed with media coverage of the crisis so far.

"The American media has covered it very well," Bergman said.

03-24-98