Tuesday 27th September 2016
In this issue of Money Truths….
- Janet Yellen has a bad habit….
- Mark Carney is afflicted with it too….
- Words divorced from meaning….
- What exactly is being managed here?
Janet Yellen has a bad habit….
It’s a funny thing but in the world of money there is frequently a clear disconnect between words put out into the public domain and the attendant actions that follow them….
Take the words of Janet Yellen, for instance. The Chair of the Board of Governors of the Federal Reserve System in America – their equivalent of the Bank of England – has been saying all year that the market can expect an interest rate hike.
The words have seemed reasonable enough. After all, back in December last year she raised interest rates for the first time in 8 years. She appeared to have set the ball rolling.
But the Federal Reserve has not actually raised rates at all during the whole of 2016.
It’s as though Yellen is suffering from a case of the yips. She knows what part of the board she wants to aim at, but doesn’t seem able to let go of the dart….
In May a poor jobs report stayed Yellen’s hand….… Click here to read more