extended period

Simone Baribeau

Fed leaders – past and present – have chosen today to be awfully talkative. And they haven’t at all times been in agreement with each other, either. So here are the highlights of today’s Fed speak.

Alan Greenspan, Former Fed chief, on the Bubble

Alan Greenspan, in an interview with Bloomberg TV, disagreed with SF Fed president Janet Yellen’s assessment that an increase in interest rates could have mitigated the growth of the housing bubble. He argued, as he has before, that a decrease in long term interest rates around the world led to the boom. Short-term interest rates were irrelevant.

Ok – so long-term interest rates are responsible for the bubble. We sure don’t want to encourage a housing bubble based on that again. Right?

Maybe not. Read more

Simone Baribeau

Dennis Lockhart, president of the Atlanta Fed, threw a wrench into the conventional interpretation of the Fed speak phrase “extended period.”

The common interpretation of “extended period” (as in, the Fed is expected to maintain exceptionally low rates for an “extended period”) is at least six months. Read more

Krishna Guha

Krishna Guha of the Financial times on whether to classify the Fed’s statement as hawkish or dovish Read more

Krishna Guha

The Fed made a change to its key guidance on interest rates – even if it was only a baby step, writes Krishna Guha of the Financial Times Read more

Krishna Guha

Krishna Guha of the Financial Times discusses the Fed’s extended period language Read more

Krishna Guha

Krishna Guha of the Financial Times discusses the Fed’s extended period language Read more