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Is the Fed is getting careless?
Wednesday, May 09, 2007
In what was probably the most boring policy statement following a Federal Open Market Committee meeting ever, the Federal Reserve intentionally changed about ten words and accidentally changed eight - unless there is some hidden meaning in the duplication of the phrase "Voting for the FOMC monetary policy action were:" as shown circled below.
The error may be corrected by the time you read this - here's what it looked like shortly after it was posted:
Click to enlarge
Is there some hidden meaning in this error or is the Fed just getting careless? Are they not aware that every phrase they commit to print and every word they utter are scrutinized in the hope that a deeper meaning might be gleaned?
There's no deep meaning in the first part of the policy statement - they got the date right and they acknowledged an economy that is slowing and consumer prices that don't appear to be heeding their master.
Maybe the duplicated text is some sort of a "double clutch" - a technique required to prevent damage to an economy's gear system, though no gears were actually shifted.
Interesting...
9 comments:
There is a ton of irony in this post.
What about the removal of the "to continue" in the 2nd paragraph? It seems to imply that the economy is no longer expanding, to me, or at least hints on this. Hmm, any ideas?
-Ivan
Doubletalk?
Just going through some past statements since I recall seeing the inflationisbadbutdontworryitwillbebetter talk before.
June, 2006 -- Although the moderation in the growth of aggregate demand should help to limit inflation pressures over time
August, 2006 -- Readings on core inflation have been elevated in recent months…However, inflation pressures seem likely to moderate over time
September, 2006 -- Readings on core inflation have been elevated…However, inflation pressures seem likely to moderate over time
October, 2006 -- Readings on core inflation have been elevated…However, inflation pressures seem likely to moderate over time
December, 2006 -- Readings on core inflation have been elevated…However, inflation pressures seem likely to moderate over time
January, 2006 -- Readings on core inflation have improved modestly in recent months, and inflation pressures seem likely to moderate over time
March, 2006 -- Recent readings on core inflation have been somewhat elevated. Although inflation pressures seem likely to moderate over time
May, 2006 -- Core inflation remains somewhat elevated. Although inflation pressures seem likely to moderate over time
Any time now, right?
http://www.federalreserve.gov/fomc/default.htm#calendars
I am shocked---shocked---to find out that the Fed's all-important policy statement, scrutinized by not only Wall Street but the entire world, influencing the destinies of billions, is obviously generated by a haphazard process of cut-and-paste, with little thought to its contents.
Shocked.
Maybe Bernanke wants to acknowledge the fact that people read to much into these statements. By deliberately adding a mistake....he's challenging everyone who scrutinizes this statement to not take it so seriously.
we can only hope.
AMHA just too much tension over mr Bernanke. He is just in such a difficult position.
There is no solution for the dollar deadlock.
Of course he is aware of his role and will be courageous till the end of it.
François
WSJ MarketBeat yesterday:
How long can the Federal Reserve maintain this rhetoric? The committee, in tortured terms, moved ever-so-slightly to a more neutral stance back in March, but investors waiting for the FOMC to shift further in the direction of rate cuts sometime, someday… please cut rates soon … were disappointed again. Instead, the dismal scientists in Washington indicated no change in what blogger Tim Iacono calls “the most boring policy statement following a Federal Open Market Committee meeting ever.” The message is the same: inflation, inflation, inflation, until stated otherwise. Economists, by and large, shrugged. “We think this statement is as hawkish as it could be expected to be,” says John Ryding of Bear Stearns.
kudos
Core inflation is total BS. Gas and food not counting toward inflation is only valid if we don't drive or eat.
Interest rates will be going up - you can bet on it.
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