Friday, 14 December 2012

Does Bernanke’s clearer ‘Fed speak’ make him a better steward of the U.S. economy?

In an unprecedented move, Federal Reserve Chairman Ben Bernanke announced that the Fed will continue to try and boost the economy until unemployment numbers hit 6.5 percent or the inflation rate reaches 2.5 percent.
This past summer, Alan Greenspan, the former Federal Reserve chairman, told a magazine how he'd practice the opaque dialect known as "Fed-speak" in his nearly two decades leading the U.S. central bank.
He said to Bloomberg Businessweek that he would think about whether a sentence he might utter could move markets — and if it could, he'd resolve "the sentence in some obscure way which made it incomprehensible."

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