Prix Fixe?

So today is the day. The Fed meets ten times every year, and today is one of those days.

Every meeting we go higgety-jiggety about what the Fed is gonna do. And pretty much every meeting we’re not surprised.

The market is saying that the Fed’s gonna be on hold for the rest of the year. And most of the time, the market’s about right. But there’s a bigger issue out there.

Most of the time, we let independent parties set prices at mutually agreeable levels. Steel, oil, grain, and cotton all have their strategic uses, and we let buyers and sellers clear the market. But not with money. Somehow we think that a committee of 12 wise men and women will do a better job setting interest rates than the market.

Don’t get me wrong: I’m not saying that we don’t need a Fed. I just think that for all the strategic importance of money, we entrust the level of interest rates to favored few, rather than to a market of millions. And the stakes are pretty big.

Douglas R. Tengdin, CFA
Chief Investment Officer
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By | 2014-09-03T20:41:19+00:00 August 5th, 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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