Until now, I have refrained from trying to explain Fedspeak to the masses. The truth is it's not opaque. It's not indecipherable. It's simple. Or at least you can choose to believe it is, as I have.
At last week’s press conference, Federal Reserve Chairman Ben Bernanke fielded questions from reporters employed by some of the world's most esteemed news organizations. Here is a summary, translated from Fedspeak into ordinary American English and heavily condensed for easy tweeting. (Compare it to a raw transcript, if you like.)Wait a minute, that doesn't sound like Martin Wolf, it sounds more like a Greenspan presser....
BERNANKE: Good afternoon. The Federal Open Market Committee concluded a two-day meeting earlier today. The economy has good things and bad things. We're on top of it. QE will continue. Subject to change. It depends.
STEVE LIESMAN, CNBC: Can you clarify something?
BERNANKE: No.
LIESMAN: So if unemployment falls to 7 percent, then what?
Bernanke: There are many factors we look at. Next question....
Here's Martin Wolf on the Fed: “Careless talk may cost the economy”. HT: (FTA)
(Wolf chews out the Fed and the BIS and sides with Bullard. -nc)
Now back to the press conference:
...CRAIG TORRES, Bloomberg News: We'd like to push for a little deeper explanation on thresholds and triggers....MORE
BERNANKE: I'm sure you would.
BINYAMIN APPELBAUM, New York Times: I want to talk about thresholds and triggers, too.
BERNANKE: Low rates. Large portfolio. Large stimulus. Bringing economy smoothly towards full employment. No costs. No risks. I am the Walrus....
