Today's Fed Speak
The medias version: Fed Governor Bies has made several uplifting comments that have renewed buying interest in equities... While Bies has said that "productivity is slowing and that labor costs increasing," arguably inflationary measures, the fact that longer-term inflation expectations remain "well contained" and that consumer and business "confidence remains favorable" has improved sentiment... Bond prices initially rose, then pulled back after the actual statement was digested.
Highlights of the actual statement...The economy has expanded...unit labor costs have increased...corporations have reduced exposure to INCREASING rates, and less debt WILL HAVE TO roll over at HIGHER RATES...Low rates WILL GIVE WAY as the economy expands...some households will be pressured by HIGHER RATES...households (will) face higher monthly payments as INTEREST RATES RISE....these comments are not taken out of context.
How many hints does the market and media need? Go read the actual statement for yourself and tell me what you think.
Actual Speech from the Fed
Highlights of the actual statement...The economy has expanded...unit labor costs have increased...corporations have reduced exposure to INCREASING rates, and less debt WILL HAVE TO roll over at HIGHER RATES...Low rates WILL GIVE WAY as the economy expands...some households will be pressured by HIGHER RATES...households (will) face higher monthly payments as INTEREST RATES RISE....these comments are not taken out of context.
How many hints does the market and media need? Go read the actual statement for yourself and tell me what you think.
Actual Speech from the Fed
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