Sunday, June 10, 2012

The low transparency Fed


The Fed is “prepared to take action”.  “at this point I really cannot say anything is off the table”

- Ben Bernanke

In the world of more central bank transparency, how should the markets interpret this message? It is not clear and makes for more policy uncertainty. it does not help if you do not specify what action should be taken and what are the conditions for action. 

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