Name That Lie: Recent Fedspeak Soundbites

Over the past two years here has been no greater soap opera (with our apologies to Congress, who we know is trying but is now well into B-actor territory) than that of the Fed's 13 Samurai (Bernanke and the 12 regional presidents). And since there is no TV Guide to summarize the key punchlines in any given month, today we commence a highlight reel of the most prominent (amusing, glaringly false, plain ridiculous) statements by various Fed officials. As this is the year where ever more attention will be placed on the fake debates by the Fed's even faker Hawk and Dove split, we are confident that it will provide hours of entertainment to see how those entrusted with protecting the US Dollar contradict themselves from month to month in their execution of job duties that are now nothing less than 100% political.

  • Bernanke ?Progress toward meeting the dual mandate expected to be slow (4-5 years). Fed has the exit tools but Bernanke implies a very slow exit. (1/7)
  • Hoenig ? Would like to normalise rates and shrink the Fed?s balance sheet. Fed policy may be causing an acceleration of land prices in the Midwest. (2/1)
  • Lockhart ? Still too early to declare victory. US jobless rate is unacceptable (1/31)
  • Fisher ? Would have voted against QE2. Have done as much as they can do for the economy, but not ?itching? to dissent. (1/20)
  • Bullard ? Too soon to reduce QE on improving economic outlook. Deflation risks have fallen, but still needs to see inflation move closer to his target. (1/12)
  • Plosser ? ?I wish we hadn?t done it (QE2), but that does not mean I want to stop it right now.? WSJ (1/11)
  • Kocherlakota ? ?The bar for dissent from the committee is going to be pretty high for me? I do not contemplate stopping QE2.? WSJ (01/10)
  • Yellen ? ?Inflation would have been 1 percent lower without asset purchases and it will end up creating 3 million private payroll jobs.? (1/8)
  • Evans? ?Rising rates are a reflection of improving conditions. Keeping an open mind on whether the Fed should expand QE2.? (1/7)

From SocGen