Greenspan's testimony

mully

Established member
967 3
These words from Alan Greenspan this afternoon do not appear to suggest an immediate interest rate rise. But the interpretation is up to each of you.

"As I have noted previously, the federal funds rate must rise at some point to prevent pressures on price inflation from eventually emerging. As yet, the protracted period of monetary accommodation has not fostered an environment in which broad-based inflation pressures appear to be building. But the Federal Reserve recognizes that sustained prosperity requires the maintenance of price stability and will act, as necessary, to ensure that outcome."
 

bracke

Experienced member
1,286 12
So to put that into plain English as opposed to fancy American.
Interest rates will go up when inflation starts to rise which is not just yet.

Hardly earth shattering or leading edge economics, just plain commonsense.

Regards

bracke
 

mully

Established member
967 3
Interesting the rather disappointing reaction (so far) by US equity markets to the comforting comments( re last night's reaction) made by Greenspan this afternoon.
 

Salty Gibbon

Experienced member
1,535 6
I think he was trying hard not to tank the market again like he did yesterday.

It might take a day or two to get over it.
 

stevem12

Active member
135 1
Depends on whether you were short the pull back or not :D
 

BBB

Experienced member
1,071 3
Bracke - bang on. But unless you can 'reverse engineer' a basic statement then how are you going to earn your 'cred'

I will never forget a tutor of mine at Uni. when my mate asked him how to earn a wedge in IT (I studied computing systems) he replied 'You need credibility and convince people you know your stuff. Blind them with science and baffle them with Bullsh!t' LOL

True in any walk of life. Politicians especially!!
 

oatman

Senior member
2,879 22
I preferred him when he sang "Spirit in the Sky".
Done well for himself though :cheesy:
 

bracke

Experienced member
1,286 12
BBB

I like 'reverse engineer' it sounds so much better than 'spin '.

almost - but not quite - gives credibility to statements

Oatman

'So much crap' Do you mean 'reverse engineer'!

It would seem that the usa markets are now accepting that the writing is on the wall and that a rise in interest rates is not too far off.

Salty Gibbon

From what I am reading the next stopping point for the dow is 10,150.

Regards

bracke
 

gist

Newbie
8 1
And the next Greenspan Gem:

"The economic recovery may falter if tax cuts expire"

Most enlightening, Alan.
 
 
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