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Tips for a Successful Press Conference

3/25/2011

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Fed Chairman Ben Bernanke
Holding a press conference is not all that newsworthy for most high profile officials in government. But when Federal Reserve Chairman Ben Bernanke announces he will soon begin holding quarterly press conferences, it becomes news.

Traditionally, the Fed Chairman issues carefully scripted remarks in Congressional hearings or in a formal speech. Clarity is not always the goal. Reporters and the public are left reading between the lines and wondering just what was meant.

So, here's what  Bernanke should remember as he heads into his first formal press conference. 
Keep in mind, these tips apply to anyone who's about to face reporters.

  1. Be clear. Avoid jargon and double-speak. If you can't talk about a certain issue for certain reasons, say so. But, don't leave it up to reporters to guess at what you intended to say.
  2. Use laymen's terms. You're speaking to more than the reporters. You're audience is the general public. So, explain what you mean when you talk about things like GDP, elasticity of demand or liquidity.
  3. Avoid speculation. Don't talk about things that are in the future and clearly unknowable. Instead, talk about what you do know and what's happened in the past. Unless you're intent on making a prediction, don't.

Bernanke has a great opportunity to clear up confusion in the financial markets, eliminate some of the guess work by analysts and average investors and help influence global markets. If, on the other hand, he tries to use these press conferences to cause confusion, that would be a mistake. We hope that's not his intention.

Facing the press is never easy. Bernanke may eventually regret his decision. But with these suggestions in mind, he can be successful. 
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