Forward Guidance Still Isn't Working

You'd never know the Fed and ECB are overseeing diametrically opposed economies from the words they use at their policy meetings.

This, I can understand.

Photographer: John B. Carnett/Bonnier Corporation via Getty Images

The Federal Reserve and the European Central Bank are diametrically opposed on the monetary-policy spectrum. The Fed is debating how soon it should start to normalize policy by raising interest rates and unwinding its huge bond-buying program as growth improves; the ECB is only just about to introduce quantitative easing as the euro region threatens to slump back into recession.

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