King defends Bernanke over communication of Fed policy
Ben Bernanke "could hardly have been clearer" when he spelled out the future of the Federal Reserve's monetary policy, and markets have "jumped the gun" in interpreting his latest comments as an indication the Fed will increase interest rates, according to Bank of England governor Mervyn King.
King believes market reactions to Bernanke's press conference last week – stock market indexes across the globe fell sharply – do not reflect the quality of the Fed chairman's communication.
He observed
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