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Another Annus Horribilis for the Fed

Over the past two years, the US Federal Reserve has repeatedly erred in its analysis, policymaking, communications, and governance. To restore its effectiveness and reduce its vulnerability to undue outside interference, Fed officials must start making up for past mistakes in the new year.

CAMBRIDGE – On the 40th anniversary of her accession to the throne, Queen Elizabeth II remarked that, “1992 is not a year on which I shall look back with undiluted pleasure. In the words of one of my more sympathetic correspondents, it has turned out to be an annus horribilis.” The late monarch’s now-famous speech followed a year of uncomfortable developments for the Crown, including a fire in Windsor Palace, the end of two of her children’s marriages (with a third royal separation to be made public the following month), and various leaks.