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Fed's Conflict Is a Symptom of Problems It Can't Solve Alone
When they conclude their two-day October policy meeting on Wednesday, Federal Reserve officials will find it much easier to communicate what they did than why they did it. Murkier still is what lies ahead. Conflicting and, at times, confusing factors fuel growing worries about the effectiveness of monetary policy in much of the advanced world. Even the Fed, the world’s most powerful monetary institution, struggles to strike a delicate policy balance. Based on the experiences of the European Central Bank and the Bank of Japan, if the Fed hopes to please all constituencies, that will prove elusive in the short term ... (full story)