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The One Place The Fed Is Rapidly Renormalizing: The FOMC Statement Word Count
While Janet Yellen is hopelessly cornered (as explained yesterday, not hiking rates or worse doing even more QE, is the single "biggest risk to global equities" according to BofA as it would not only soak up even more liquidity and crush confidence in the economy, even worse than the Fed did hike rates and unleash the "Ghost of 1937") when it comes to monetary policy, one place where the Fed's desperate scramble to renormalize is distincly visible is in the FOMC statement itself.
As the chart below shows, after peaking at 895 words in September 2014, just when the Fed announced the end of QE3, the word cound of FOMC statements has tumbled and at 560 words, the April statement was the most "normal" since October 2012 when the Fed was merely doing Operation Twist, and QE3 was still a speculation.
In the absence of any other guidelines, and it is widely expected that there will be no firm commitments either by the "Dow Data Dependent" Fed about a September or December rate hike, the number of words in the June statement may be the only hint whether the recent trend of renormalization will continue or if something has changed and, with a 700 or even 800 word bombshell statement, easing is here to stay for a long time.
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No normalization of rates during my lifetime Bernanke
When you talk from both sides of your mouth, word count has to rise.
More QE is just what the Dr. ordered. After all, it has worked so well so far.
FOMC = "F Over Most of Citizenry"
Celebrate 100 year reign of monetary policy extending beyond USSA border.
How's the subterranean copper recovery project going, Boris?
Is very very busy in Sochi region. Boris is rump up for hiring, so you are please to come work for Boris! Please to bring own rubber boot and thick leather glove. If you are want electricity, also is recommend to bring gas or diesel power generator because electricity supply is very be spotty in Sochi region. Oh, and you are must also to bring toilet tissue for hygenic purpose.
"This is Captain Yellen. I am not really a ships' captain, I merely play one on teevee."
Lets hope Hilsenrath's typist is ready
I would like to see a 50 point dick punch, just to see the market throw a temper tantrum right at the same time Greece tells the Eurozone to go kick rocks.
Am I missing something here...what is the word we are looking for this time....we usually have a word......
"Correction" ...? Adjustment? Fix? CTRL-P?
Word count is down!!1!!!
BUY ALL THE THINGS!
When I first glanced at the title I thought it said: The FOMC statement word cunt. I thought they were making a statement about Hillary,but then I remembered the only thing Hillary has in common with cunts is licking them.
Nothing....not even a good word....blah blah blah...in other words we wasted a few days waiting on this crap...back to Greece