《考研英语阅读理解100篇 高分版》 Unit 12 - TEXT THREE

He gave no steer on future interest rate decisions and no assessment of where he sees the economy going. Yet Ben Bernanke's speech at the Cato Institute in Washington, D.C., on November 14th may be judged as the one in which he stamped his mark on America's monetary policy.
The Federal Reserve's chief used his speech to unveil the central bank's new strategy for communicating with the public. In short, the Fed plans to talk more—and more often—about its assessment of the economic outlook. While the Fed is not about to join the band of central banks that are guided by an explicit goal for prices, it will borrow some of the inflation-targeters' clothes. More than one Fed-watcher dubbed the new public-relations policy “inflation targeting-lite”. Until now, the Fed has published two forecasts a year. Starting on November 20th it will publish projections once a quarter. The end-point for forecasts will be pushed out from two to three years hence. And alongside the forecasts will be a “narrative” that gives more detail on the differences on the Federal Open Market Committee (FOMC), the Fed's rate-setting body.
Lengthening the forecasts from two to three years is more important than it sounds. Three-year forecasts should be untainted by transitory factors that blow the economy off course. As a result, they will say a lot about how quickly policymakers think the economy can grow and how low they believe the jobless rate can safely go. And since forecasts are conditional on an “appropriate” setting for monetary policy, the longer-term projections will reveal the inflation rate the FOMC is aiming for. If views diverge, then Fed-watchers will have not one but several inflation “targets” to focus on.
Ever the diplomat, Mr. Bernanke said that the new communications set-up is a “work in progress” and stressed it would not affect policy decisions. Yet his speech gives a clear sense of the kind of central bank he wants to run. The emphasis on providing a deeper insight into the spread of views on the FOMC signals a different approach from that of his predecessor, Alan Greenspan. Mr. Bernanke said allowing diverse views reduces the risk that one voice becomes “unduly dominant”.
Another theme is a more prominent role for explicit benchmarks. Mr. Bernanke acknowledged that his preference for an inflation target is not compatible with the Fed's “dual mandate”, which puts the goal of maximum employment on an equal footing with price stability. But he has nevertheless managed to find a way to get the Fed to be much clearer about its objectives. He acknowledged that one benefit of extending the Fed's forecasts for an extra year is that it will provide “an evaluation of certain long-run features of the economy”. And by agreeing to publish forecasts for headline inflation, as well as the less volatile core data, Mr. Bernanke has also addressed the growing perception that the Fed thinks fast-rising food and energy costs are not its problem.
This is an opportune time to make the Fed's policymaking more open. As Mr. Bernanke made clear, greater transparency will bolster the Fed's legitimacy and help preserve its independence. Since recent readings on inflation and activity are sending conflicting signals, the Fed will need an understanding and informed public if it is to make the right choices.
1. Which one of the following is NOT the change brought by the new strategy?
[A] Economic forecasts will be issued at a higher frequency.
[B] More details will be provided on economic outlook.
[C] The Fed's functions begin to resemble those of the central banks of other countries.
[D] It is of significant importance to lengthen the forecasting years.
2. The “inflation-targeters” (Line 4, Paragraph 2) refers to _____.
[A] Fed-watchers
[B] central banks
[C] the rate-setting body
[D] the public
3. The word “untainted” (Line 2, Paragraph 3) most probably means _____.
[A] affected
[B] uninfluenced
[C] unmarked
[D] guided
4. Compared with the approach of his predecessor, Mr. Bernanke's approach is more _____.
[A] complex
[B] democratic
[C] reasonable
[D] practical
5. The second theme of Mr. Bernanke's speech is that _____.
[A] the goal of price stability is not supposed to be of the same importance as that of maximum employment
[B] it is very important to set a clear standpoint
[C] the Fed should establish new ways to find better objects
[D] inflation target should be the main focus for the coming economic forecasts