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Mihov: Fed Release Meant to Calm Congress

CNBC.com
Tuesday, 26 Apr 2011 | 7:23 PM ET

This is a transcript of top stories presented by China's CCTV Business Channel as produced by CNBC Asia Pacific.

Hello to our viewers across China. I'm Saijal Patel and you're watching "Asia Market Daily".

As the U.S. Federal Reserve's two-day policy meeting gets underway, the focus is firmly on Chairman Ben Bernanke's first post-meeting news conference.

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The Fed Chief will address the media on Wednesday... and market watchers will be looking for any hints that the central bank plans to exit its controversial bond-buying program in June.

(SOT) Ilian Mihov, Professor of Economics at INSEAD:
I think that he'll be extra careful to make sure that these meetings, these press conferences are ways to calm the market, to convey what the Fed is thinking. He'll basically talk about three things. I think the economy. He'll try to steer the public's belief that the economy is recovering. But you know there's still soft patches here and there. Then the second thing is obviously inflation. And of course the third thing that is on the minds of everybody is the exit strategy.

Professor Ilian Mihov has dismissed concerns that the Federal Reserve's new openness could hurt its policy making strategy in the long term. He says he doesn't believe too much transparency could be counterproductive.

(SOT) Ilian Mihov, Professor of Economics at INSEAD:
I think this is not extreme transparency. At the end of the day, we're talking about just a little bit of a release of what the Fed is thinking and calming the, I would say the Congress, we're not even talking so much about the public, but the congress that you know the Fed is not this secretive place to be.

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We look forward to hearing from Bernanke. That wraps up the latest "Asia Market Daily", I'm Saijal Patel from CNBC. Thanks for watching.

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