What central banks may have the world over is a failure to communicate.
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.
Alan Blinder, Fed vice chairman from 1994 to 1996, said he’s “very worried” financial markets will overreact to steps by the Fed to reduce and eventually exit from its efforts to support the economy.
“I’m afraid it’s going to be worse than 1994,” when 10-year yields jumped almost 2.5 percentage points as the Fed tightened credit, said the Princeton University professor. And capital losses will be…
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Homeland Security Secretary Janet Napolitano weighed in on the NSA intelligence leaks on Friday, telling NY1 that fears over government surveillance were overblown.
“I think people have gotten the idea that there’s an Orwellian state out there that somehow we’re operating in. That’s far from the case,” she told Errol Louis during an appearance on Road to City Hall.
Despite civil liberties advocates’ fears that monitoring efforts have gone too far, “there are lots of protections built into the system,” Ms. Napolitano said, pointing to a privacy office embedded in her own department that is “constantly reviewing our policies and procedures.” She further stressed the court review system.
No one should believe that we are simply going willy-nilly and using any kind of data that we can gather,” she said.
Still, she acknowledged the federal government hasn’t done the best job of keeping the public informed about how it is…
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