Thursday, October 29, 2015

Rarely Used Fed Language




In new language in the Federal Reserve statement released yesterday, the Fed said: “In determining whether it will be appropriate to raise the target range at its next meeting, the Committee will assess progress--both realized and expected--toward its objectives of maximum employment and 2 % inflation.”

Terry Sheehan, an economic analyst at Stone & McCarthy Research Associates, writes that Fed policy makers have used “the next meeting” language only once before in regard to the policy outlook -- in December 1999. A rate hike followed at the next meeting, she noted.

 -RW

5 comments:

  1. Rate hikes for the holidaze! Because CONfidence. Should be just the thing for those 12/31 401(k) balance statements...

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  2. So rumors and innuendo you report on, but nothing regarding GDP number, huh? No thoughts on it? I guess it’s not that important, compared to reading tea leaves…

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  3. Fully covered in the EPJ Daily Alert, including commentary on why those focused on the latest GDP number are way off base.

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  4. It's not just the GDP number...it's also the CPI and the capital goods sector in the economy it's languishing. How could the FED possibly raise rates when they are seeing those same numbers?

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  5. Propaganda. The illusion of strength....

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