A Personal Letter

The U.S. Federal Reserve's decision not to taper its quantitative easing programme in September (i.e. cut back on monthly purchases of USD85 billion worth of bonds) surprised most financial market participants. Here's a (satirical) 'personal' letter from Fed Chairman Ben Bernanke in the wake of some incredulous responses from market participants.

DEAR MARKET,
THANK YOU FOR YOUR CANDID COMMENTS IN THE FINANCIAL MEDIA. AS CHAIRMAN OF THE WORLD'S MOST-WATCHED CENTRAL BANK, I'M SURE YOU CAN APPRECIATE THAT MY SCHEDULE IS VERY BUSY. NEVERTHELESS, I'M TAKING THE TIME OUT TO WRITE YOU A PERSONAL REPLY.

I'M AWARE THAT THERE ARE 2 COMMITTEE MEETINGS REMAINING THIS YEAR, SO THE WINDOW TO MAKE CHANGES BEFORE MY TERM AS CHAIRMAN EXPIRES IN JANUARY IS DIMINISHING. AFTER ALL, UNLIKE MY PREDECESSOR, WHO HAD BEEN ACCUSED OF ALLOWING ECONOMIC CONDITIONS TO SIMMER THAT FACILITATED A HOUSING BUBBLE AND PRECIPITATED THE 2008 FINANCIAL CRISIS, I'D HATE TO LEAVE WITH UNFINISHED BUSINESS.

BY RUNNING MONETARY POLICY IN A TRANSPARENT WAY, MOST CENTRAL BANKERS ASSUME THAT THEIR MESSAGE IS WELL UNDERSTOOD. YET OFTEN, THEY ARE CRITICISED FOR BEING OUT OF TOUCH WITH MARKET PARTICIPANTS. BUT I DON'T THINK THAT'S THE CASE WITH ME, RIGHT MARKET?

SINCERELY,
BEN