June 27 (Bloomberg) -- Try as he might, Federal Reserve
Chairman Ben S. Bernanke can’t seem to get the market to
understand the central bank’s plans. The problem might be less
his communication skills than what he’s trying to communicate.
Since last week’s Fed meeting, at which Bernanke sought to
clarify the central bank’s plans to decelerate the bond-buying
program known as quantitative easing, investors have acted as if
he signaled a major pullback in stimulus. A simple analysis
suggests the market has overreacted.