Why Markets Aren’t Getting the Fed’s Message
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June 27 (Bloomberg) -- Try as he might, Federal ReserveChairman Ben S. Bernanke can’t seem to get the market tounderstand the central bank’s plans. The problem might be lesshis communication skills than what he’s trying to communicate.
Since last week’s Fed meeting, at which Bernanke sought toclarify the central bank’s plans to decelerate the bond-buyingprogram known as quantitative easing, investors have acted as ifhe signaled a major pullback in stimulus. A simple analysissuggests the market has overreacted.