Fed Chairman Ben Bernanke Takes Tweets Live, Is This A Good Thing?
Don’t think Fed Chairman Ben Bernanke isn’t keeping up with the latest trends outside the world of economics. He’s just as aware of the impact of social media as anyone. Today the head of the FOMC took questions live today at the Gerald Ford School of Business in an event called “A @Fordschool Conversation with Federal Reserve Chairman Ben Bernanke” at the University of Michigan.
Anyone who tweeted a question with the hashtag #fordschoolbernanke might have had their question answered today. The Fed has been known to be an extremely private institution but Ben Bernanke has been extremely transparent by letting markets know exactly what he was going to do – and for the most part he’s done it.
There are competing theories about whether the Fed should be open about its operations or perform in a manner where markets are surprised. Perhaps with the advent of social media, it’s better for traders to know what the FOMC will do because trends can become viral much quicker than in years past which could make markets more volatile. Traders like volatility but too much uncertainty can cause markets to trade sideways or trend down.
Bernanke is taking advantage of all media available to him and should be given kudos for exploiting them at a time when the economy is in severely bad shape. This is probably one of the main reasons the market has been so resilient in the last few months because the “Bernanke Put” is a stable, trending topic that is helping to keep markets afloat.