Foward planning not always frugal

The current trend is for central banks giving forward indications on future decisions which is designed to steady the markets and give extra confidence to businesses and individuals. This method was introduced to the UK by the incoming Bank of England Governor Mark Carney and now the incoming Chair of the FED  Janet Yellen has tried the same trick over the pond but while at first this seem to have the desired effect now the markets have run ahead of the news and are reacting to the slightest diversion from the plan. This week the FED has indicated that although it will start to taper off its quantitive easing, interest rates will remain lower for longer than expected, which resulted in stock markets rallying after what was a torrid week for shares.