UsableMarkets

Pity the poor reporter who has to cover the Fed (and perhaps any central bank). Krishna Guha does an admirable job of it for the FT, deciphering Fed gobbledygook. This example from today’s story – Fed signals gear change with end to big rate cuts – shows some skill.

Policymakers felt that – with the risks to both growth and inflation “elevated” – “appropriately calibrating the stance of policy was difficult”. This is a technical way of saying it was hard to judge what the right level of interest rates was.

Of course, one wonders why the Fed can’t speak “straight” to begin with, but perhaps, like any highly academic field, language plays a gate keeping role. If you understand it, you’re in. If not, you’re out.

The really fascinating thing is that this from the FT, where one assumes its readers are financially literate to begin with. So, if translations are needed here, things must be really bad.

What … you don’t understand me!?!?

As always, thanks for listening.
~alex