Bloomberg editor responds to Fed chairman, praises more openness

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A day after Federal Reserve chairman Ben Bernanke wrote a letter criticizing Bloomberg News for its recent coverage of the agency, Bloomberg editor in chief Matthew Winkler responded in a column by thanking the chairman for opening the dialogue more but asked for more disclosure.

Winkler wrote, “Those disclosures, the first of their kind by the Fed, formed the basis for more than a score of news stories over the past year, including those Bernanke complained about this week. Those reports, full of information that had not been made public, revealed two fundamental truths:

“First, the Fed deserves ample credit for acting in bold, unprecedented ways to save the financial system and the world from a disaster of mind-boggling magnitude. Second, aspects of that rescue make clear that the Fed also merits ample scrutiny about how it operated. Nothing less is acceptable in a world that values transparent markets and governments — and strives toward both.

“The extent to which Bernanke’s Fed is willing to engage with such matters — and the chairman’s letter this week shows evidence of real engagement — will only give investors, policy makers and the public more faith in this powerful institution.

“We don’t expect to agree always. Regardless, we welcome the frank sharing of views that Bernanke initiated this week.”

Read more here.