At the last Federal Open Market Committee meeting, Fed Chairman Ben Bernanke hinted that further spending in the form of quantitative easing had not been ruled out. This triggered a stock sell-off as investors saw the comments as a signal that the Fed was expecting the economy to weaken during the second half of the year. With the FOMC meeting again this week, critics are calling for a forthright discussion on what the Fed has planned for the next six months.
Ã¢â‚¬Å“They (the Federal Reserve) have to do a better job of centering expectations of what ultimately the policy intention is and how will they reach that,Ã¢â‚¬Â said Duy, an economist at the University of Oregon. Ã¢â‚¬Å“Given that we are in uncharted waters for policy, the risks of getting it wrong will be magnified.Ã¢â‚¬Â
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