Feels in the loop is not a communication need. Communication should be dictated by a project's stakeholder analysis. In other words, a project will scan its stakeholder environment, segment accordingly, and determine what communication requirements exist both outgoing and incoming. If a stakeholder segment is determined not to have any real requirements of either being informed or informing, then no communication message should be transmitted.
The problem is, communication is costly and have risk for various penalties. Peppering stakeholder groups with messaging, e.g., group emails or newsletters or some other mass distribution solution, costs money to build and distribute and you run the risk of training people to ignore these transmissions if the information provided becomes irrelevant. And "feeling in the loop" type messages run that risk.
So your stakeholder analysis for each project needs to dictate the communication plan and segmented requirements need to be real. Otherwise, it is far more beneficial to disappoint your people and making them "feel out of the loop" then to try to satisfy that and open the door to secondary risks and penalties. This may feel counter intuitive in the feel good management style that is promoted these days, but the costs are real and you must, as a manager, weight the benefits carefully.
EDIT to respond to rwong:
If there was a true psychological need by an entire stakeholder group to be kept aware of something, then there would likely be consequences of not keeping them in the loop such that your analysis would reveal a beneficial communication need. If it is solely to be 'kept in the loop', which suggests someone just wants to know something, then I stick by my answer. It is not likely there would be any real consequence of denying him information but you would have other secondary risks, penalties, and costs of not denying him that information.
Management, including project management, sometimes is about tough decisions that benefits the organization as a whole but can make individuals mad. It's a tough job. You cannot please everyone all the time. Pick and choose.