How the Fed can soothe nervy markets

An audience at The Bankers Club in Hong Kong this week heard how the US central bank could apply more transparent and accountable policy to reassure jittery markets, although not everyone was in agreement. Giving the address was Charles Evans, president and CEO of the Federal Reserve Bank of Chicago. His argument was that the Federal Open Market Committee (FOMC) – which oversees the Federal Reserve’s buying of Treasuries – should commit to a 7:3 threshold rule. By this he means …