Endangered Species

Pity the poor Fed Watcher. There’s hardly anything left to do.

In days gone by, Fed watching was a contact sport. There were cryptic actions by the New York Fed that went by names like “System RP” and “Bill Pass.” These seemed more like football plays than policy actions. Back then, a Fed watcher had to translate the arcane actions into meaningful intentions. It took training in economics, finance, and communications.

In 1994 the Fed initiated a new policy of announcing Fed decisions. But Greenspan enhanced this with his policy of “constructive ambiguity.” Now you needed a degree in Russian Literature to decode his pronouncements.

With Bernanke, there really doesn’t seem to be anything to do. Not only is he clear in what he says, he’s put Fed policy on perma-hold. The Fed watchers are endangered again.

So don’t worry if they squawk about rising rates. Most likely, they’re just getting bored.

Douglas R. Tengdin, CFA
Chief Investment Officer
Hit reply if you have any questions—I read them all!

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www.chartertrust.com • www.moneybasicsradio.com • www.globalmarketupdate.net
By | 2014-09-04T18:38:08+00:00 June 12th, 2009|Global Market Update|0 Comments

About the Author:

Mr. Tengdin is the Chief Investment Officer at Charter Trust Company and author of “The Global Market Update”. The audio version of each post can be heard on radio stations throughout New England every weekday. Mr. Tengdin graduated from Dartmouth College, Magna Cum Laude. He received his Master of Arts from Trinity Divinity School, Magna Cum Laude and received his Chartered Financial Analyst (CFA) designation in 1992. Mr. Tengdin has been managing investment portfolios for over 30 years, working for Bank of Boston, State Street Global Advisors, Citibank – Tunisia, and Banknorth Group. Throughout his career, Mr. Tengdin has emphasized helping clients manage their financial risks in difficult environments where they can profit from investing in diverse assets in diverse settings. –
Leave a comment if you have any questions—I read them all!
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