When it comes to communicating with the public, the Federal Reserve may find it just talks too much.
That at least is the view of Dallas Fed economist Antonella Tutino, who believes "the public's limited attention span" makes lengthy and complicated Fed statements a detriment to effective communication.
"A central bank should be concerned about overwhelming the private sector with too many details in its pronouncements," Tutino said in an analysis on the branch's website. "In so doing, it runs the risk that the less-than-fully engaged public may misinterpret the statements, leading to an unintentional and counterproductive response."
Indeed, the Fed has experienced a communication gap with the public and the markets as it has tried to normalize policy after the extraordinary measures it took during the financial crisis.
Starting essentially with the "taper tantrum" in 2013, the Fed has had a series of clumsy experiences in trying to get the market used to any tightening. Most recently, central bank officials have expressed frustration with the market's low expectations for rate hikes this year.