We have a Federal Reserve lack of transparency problem.

The Federal Open Market Committee (FOMC), a committee within the Federal Reserve System, is charged under United States law with overseeing the nation’s open market operations.

In the Federal Open Market Committee’s (FOMC) latest policy statement made yesterday, the institution said the U.S. economy is expanding at a “moderate pace,” as consumer spending and business capital investment have risen at “solid rates.”

While these words do give investors something to go on, they’re still vague statements. They don’t provide any tangible answers, and they are doled out unilaterally, with no press conference in which questions can be asked.

In fact, the difference between language in the September and October statements was simply a switch from “determining how long to maintain” low rates to “whether it will be appropriate” to hike.

FOMC statements alone aren’t the only problem contributing the Fed’s lack of transparency – they are really part of a larger issue…

A Look at the Federal Reserve Lack of Transparency Problem

Over the past two decades, the Fed has tried to evolve from an absolutely secretive institution to one committed to transparency.

But it isn’t working.

Money Morning Chief Investment Strategist Keith Fitz-Gerald, a 34-year seasoned market analyst and professional trader, has long been vocal about the U.S. Federal Reserve’s lack of transparency.

“I’ve said for years (many of which I was a lone wolf in the wilderness) that the Fed is not transparent, that it has harmed markets more than it has helped them, and that it has done absolutely no good for the American public and global financial markets,” Fitz-Gerald said on Sept. 25.

The Fed has two major factors that obfuscate onlookers.

The first is its flawed concept of “forward guidance.”