2013-06-17 — bloomberg.com
Officials are struggling to spell out their visions for monetary policy, often amid a chorus of competing views. Chairman Ben S. Bernanke is trying to manage expectations about when the Federal Reserve will slow asset purchases and raise interest rates. Bank of Japan Governor Haruhiko Kuroda's reflation-push is backfiring by driving up bond yields. European Central Bank President Mario Draghi is dashing investors' hopes he once kindled for extra stimulus.
The dilemma now is that officials are in what Sylvester Eijffinger, a professor of financial economics at Tilburg University in the Netherlands, likens to what old maps would call "terra incognita" -- the Latin for "unknown land."
In the case of the Fed, while good communications are vital for controlling markets, they're complicated by the officials themselves not knowing when to exit, disagreeing over the right timing to do so and political pressure to hold back.
You mean these hacks don't know what the !@$% they are doing? Big surprise around these parts. But we can see why markets would be a little upset at the revelation...
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