For the Fed, less bad news is good news

By Kyle Campbell

After a year of scrutiny and criticism, the Federal Reserve had a good week — or, at least, a week that was much better than it could have been. Two major developments last week bolstered the central bank’s credibility in setting monetary as well as bank regulatory policy at a time when it is facing heavy scrutiny on both fronts…”It could have been a very bad week, but the fact that there weren’t crises is a pretty faint measure of success,” said Karen Petrou, managing partner of Federal Financial Analytics. The positives of last week’s episodes also come with significant caveats.