Friday, November 20, 2015

Fed's Bullard Says Investors Should Prepare for Uncertainty Era

The era of transparency that began in 2012 apparently has ended. Flying by the seat of their pants from one meeting to another, or as Bullard describes it, a new Uncertainty Era has replaced transparency.  The market's apathetic response to the 'news' suggests that vast majority of investors had no bloody idea what the Fed was thinking or doing during the Era of Transparency.

Good entertainment, though.

Headline: Fed's Bullard Says Investors Should Prepare for Uncertainty Era

Federal Reserve Bank of St. Louis President James Bullard said investors should prepare for uncertainty on whether the Federal Open Market Committee will raise its target interest rate at each meeting next year, as the era of signaling moves is over.

“We are going to return to an era where there is a bit more uncertainty about what the committee is going to do, meeting to meeting,” Bullard, who votes next year on policy, told reporters after a speech in Fort Smith, Arkansas. “Markets have been used to us being at zero for seven years where we didn’t have this kind of uncertainty. I would welcome the return of that.”



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