Wednesday's Fed Announcement Settled Nothing
This past Wednesday Janet Yellen announced the Fed would hold the Fed Funds rate as is; however they are now more likely to raise rates in December - assuming the data indicates that to be the correct course of action. The announcement settled nothing. A slew of pundits think it does. I beg to differ. Here's why.
For some reason, I listened to Yellen's announcement and the subsequent Q&A. Usually I consider it a waste of time. But every once in a while, I figure, what the heck, let me see what's going on "live" just to reconnect with the whole ongoing drama of the Fed and interest rates. I even listened to some of the "analysis" proffered by various "experts" afterwards. So having listened to it all, I can confirm: a) The decision to ignore these "shows" will remain my default; b) Janet Yellen's comments, the audiences' questions and experts who subsequently commented sounded precisely the same as the last time I tuned in (whenever that was within the last year or so). Nothing's changed.
As for Yellen's "announcement," that too hasn't changed from past announcements: No change now, likely change next time, assuming the data reinforces an interest rate rise. Really. Nothing new there. Nothing settled.
For a brief moment, I was going to say that it was puzzling how the so-called experts could derive anything of substance or merit on which to comment. What was I thinking? Of course, the subsequent comments simply fulfill the need for comment, provided by those who develop the reputation and reliability to provide such commentary. Next time, listen carefully to the words that flow like a bad jazz musician running scales to your favorite song. Can you make out anything worth noting or remembering? Has anything been said you haven't heard before - multiple times?
Then again, I may very well be sufficiently jaded at this point such that even if something new, unique, or somehow worth noting was spit out at some point, I'd probably miss it. So if you did hear anything of note, please let me know.
For some reason, I listened to Yellen's announcement and the subsequent Q&A. Usually I consider it a waste of time. But every once in a while, I figure, what the heck, let me see what's going on "live" just to reconnect with the whole ongoing drama of the Fed and interest rates. I even listened to some of the "analysis" proffered by various "experts" afterwards. So having listened to it all, I can confirm: a) The decision to ignore these "shows" will remain my default; b) Janet Yellen's comments, the audiences' questions and experts who subsequently commented sounded precisely the same as the last time I tuned in (whenever that was within the last year or so). Nothing's changed.
As for Yellen's "announcement," that too hasn't changed from past announcements: No change now, likely change next time, assuming the data reinforces an interest rate rise. Really. Nothing new there. Nothing settled.
For a brief moment, I was going to say that it was puzzling how the so-called experts could derive anything of substance or merit on which to comment. What was I thinking? Of course, the subsequent comments simply fulfill the need for comment, provided by those who develop the reputation and reliability to provide such commentary. Next time, listen carefully to the words that flow like a bad jazz musician running scales to your favorite song. Can you make out anything worth noting or remembering? Has anything been said you haven't heard before - multiple times?
Then again, I may very well be sufficiently jaded at this point such that even if something new, unique, or somehow worth noting was spit out at some point, I'd probably miss it. So if you did hear anything of note, please let me know.
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