I saw some comments from a Wells Fargo strategist that are worth repeating and expanding on:
- The market reacted to the hawkish FOMC meeting when it happened
- Later, Bernanke was dovish, Dudley was slightly more hawkish and the rest of the gang was a mixed bag
- Now, we react to the minutes, which reflect the Fed’s thinking a month ago
- What happens if Bernanke simply repeats his most recent comments?
There is no sense fighting transparency because it’s the mode du jour in central banking circles, but at times like this it would be nice if policymakers were speaking with one voice. The Fed is in wait-and-see mode and the market wants clarity, it’s a poor mix.
