Monday, August 3, 2015

The Most Frequently Spoken Words by Fed Chair Janet Yellen

CNBC has put together a list of the most frequently spoken words by Fed Chair Janet Yellen in her statements and answers to questions in the six FOMC press conferences since she became chair in February 2014.

Note well, as I have pointed out many times in the EPJ Daily Alert. there is hardly any focus at the Federal Reserve on money supply and money supply growth. The words money and supply are not even on the list of top words mentioned by Yellen.

Yellen and the rest of the Fed monetary policy committee are about as far away from any application of Austrian school business cycle theory as an economist could get. They are driving the economy clueless without sound theory.


 -RW 
at 12:01:00 PM

4 comments:

  1. DonxonAugust 3, 2015 at 2:46 PM

    The fact that someone made this chart just demonstrates how crazy this all is. It's like Greeks trying tofigure out what the oracle at Delphi means. I just don't understand why the other adults in the room don't laugh at her.

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  2. Brian EricksonAugust 3, 2015 at 4:50 PM

    Listening to people's words to determine their intentions regarding the use of force and/or the direction of that force has never been consistently accurate, especially as regards government bureaucrats and politicians. Her heavy use of the words "appropriate," "economic,"and "growth" have grown at a rapid pace since March while her less frequent use of the words "longer" and "unemployment" have declined at a rapid pace. And the words "guidance" and "fomc" have nearly disappeared from her rhetoric. These verbal trends are meaningless and they certainly reveal nothing about the degree of Austrianess in her economic view. Her actions however are quite clear. Whatever the "data" (which while infrequently used has had the second highest growth rate since March) she will continue to manipulate the money supply , a very non-Austrian activity. As usual, actions speak louder than words.

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    Replies
    1. DAugust 4, 2015 at 12:51 PM

      I agree that these word counts are overrated, but it doesn't mean they have no relevance. I sure didn't expect "price-signals" or "malinvestment" to be at the top of the list like I would with an Austrian. It kind of reminds me of Keynesian vs Austrian econ. Someone with a Keynesian mindset would draw all sorts of predictive conclusions from such a thing while an Austrian would take it for what it is, just another tool, which is irrelevant absent context.

      Delete
  3. AnonymousAugust 4, 2015 at 12:08 AM

    Damn, my money would have been on: "so..."

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