FEDSPEAK again

junior1

Well-Known Member
May 29, 2001
7,317
8,237
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So the other day we get two speeches by FED governors both "tough guy" remarks that FED loosening is "off the table" by one and that the other "might consider" slowing the rate of increase to the fed funds rate if he determines the data warrant it. Markets turn down based on more hard core statements.
These are the same yahoos who had the chance to "gracefully" and slowly raise rates a year and a half ago when many economists were predicting inflation as a result of maintaining a fed rate of close to zero. But the governors knew better....and the same yahoos who told us that inflation was "transitory" the first of this year only to see it spike to 9.1% and hold pretty firm throughout the year.
But now, all of a sudden, it appears, that FED governors have somehow gained unimpeachable knowledge of what are the right steps to take to overcome our financial dilemma. And somehow the American people and financial "experts" react.
I guess the feeling is that if FED governors keep making remarks, at some point they may be right.....just like that blind squirrel thing
 
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roswelllion

Well-Known Member
Gold Member
Aug 18, 2003
10,150
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So the other day we get two speeches by FED governors both "tough guy" remarks that FED loosening is "off the table" by one and that the other "might consider" slowing the rate of increase to the fed funds rate if he determines the data warrant it. Markets turn down based on more hard core statements.
These are the same yahoos who had the chance to "gracefully" and slowly raise rates a year and a half ago when many economists were predicting inflation as a result of maintaining a fed rate of close to zero. But the governors knew better....and the same yahoos who told us that inflation was "transitory" the first of this year only to see it spike to 9.1% and hold pretty firm throughout the year.
But now, all of a sudden, it appears, that FED governors have somehow gained unimpeachable knowledge of what are the right steps to take to overcome our financial dilemma. And somehow the American people and financial "experts" react.
I guess the feeling is that if FED governors keep making remarks, at some point they may be right.....just like that blind squirrel thing
Well the Federal reserve always over reacts going both directions. The reason i guess is the actual impact of raising and lowering rates takes much longer than anticipated. look at housing. It is just starting to affect the housing market, and will take another 6-6 months before housing prices start to drop.
 

Ski

Well-Known Member
May 29, 2001
10,046
12,429
1
So the other day we get two speeches by FED governors both "tough guy" remarks that FED loosening is "off the table" by one and that the other "might consider" slowing the rate of increase to the fed funds rate if he determines the data warrant it. Markets turn down based on more hard core statements.
These are the same yahoos who had the chance to "gracefully" and slowly raise rates a year and a half ago when many economists were predicting inflation as a result of maintaining a fed rate of close to zero. But the governors knew better....and the same yahoos who told us that inflation was "transitory" the first of this year only to see it spike to 9.1% and hold pretty firm throughout the year.
But now, all of a sudden, it appears, that FED governors have somehow gained unimpeachable knowledge of what are the right steps to take to overcome our financial dilemma. And somehow the American people and financial "experts" react.
I guess the feeling is that if FED governors keep making remarks, at some point they may be right.....just like that blind squirrel thing
Funny how things change right after an election, isn't it? Election over, now let's administer the pain we should have delivered last year for the next year and then let's loosen things up the year prior to the next election (applies if Dems are running things -- just the opposite if the Reps are in charge).