Fed Musings

By now everyone knows that the Fed is standing to and leaving interest rates on hold. Of particular interest to me was their official statement. While the economy is slow right now, the outlook for inflation is far from clear. Rising energy and food prices could sneak their way into the core CPI numbers that the Fed watches so closely.

Of equal interest was the substance of the vote. Dallas Fed president Richard Fisher dissented and voted for a rate increase. The regional bank presidents are getting more powerful as the Board of Governors shrinks. This is happening because the Bush administration can’t get its nominees past a resistant Congress.

This Fed is a far cry from the monolith that Alan Greenspan led. Bernanke’s style is to stimulate discussion and encourage dissent. While that tends to provide better outcomes over time, it can lead to more uncertainty in the short run.

Douglas R. Tengdin, CFA
Chief Investment Officer
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By |2014-09-03T19:53:27+00:00June 26th, 2008|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! - And Follow me on Twitter @GlobalMarketUpd

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