Because central banks hold significant economic power and operate with high autonomy, they must maintain clear transparency and communication frameworks to remain accountable to the public and elected bodies. [1, 2]

[FOMC / ECB Policy Meeting] ---> Immediate Policy Rate Release ---> Formal Press Conference Q&A
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[Anchored Forward Guidance] <--- Release of Detailed Meeting Minutes <------+

Central banks use public testimonies, formal press conferences, and the publication of comprehensive economic projections to explain their policy choices. This clear Forward Guidance helps financial markets understand future interest rate paths, reducing market volatility and improving the overall effectiveness of monetary transmission channels.