- The Big Picture - http://www.ritholtz.com/blog -
Hilsensrath: Don’t Worry About The Federal Reserve’s Hawks, QE Is Still Possible
Posted By James Bianco On August 20, 2012 @ 8:30 am In Think Tank | Comments Disabled
Jon “Fed Wire” Hilsenrath spoke again yesterday. We believe the highlighted part above is the most important passage of the story. Statements by the hawks like Fisher and Plosser do not represent a change in Federal Reserve policy. So, treat them like the crazy uncles at the family get-together and understand the rest of the family (FOMC) is still on board for more QE.
Hilsenrath publishes two types of stories. One type is the general news story about the economy or an explanation of FOMC policy. The other type typically carries a message directly from the Federal Reserve. The highlighted passage above suggests this is the latter. We do not believe Hilsenrath has gone rogue and writing this without Bernanke’s knowledge. We believe he was prompted to write this story after a conversation with someone at the Federal Reserve.
Hilsenrath has published 6 to 8 stories since March promising more QE is on the table . At some point the Federal Reserve has to stop making promises and actually take action.
For more information on this institutional research, please contact:
Article printed from The Big Picture: http://www.ritholtz.com/blog
URL to article: http://www.ritholtz.com/blog/2012/08/hilsensrath-dont-worry-about-the-federal-reserves-hawks-qe-is-still-possible/
URLs in this post:
 Jon Hilsenrath: Fed Hawks Speak Out Against QE3: http://professional.wsj.com/article/SB10000872396390444233104577593333975725566.html?mod=WSJPRO_hpp_LEFTTopStories
 6 to 8 stories since March promising more QE is on the table: http://www.arborresearch.com/bianco/?s=hilsenrath&cat=-27
 Fed hawks attack idea of more bond buys: http://www.marketwatch.com/story/fed-hawks-attack-idea-of-more-bond-buys-2012-08-16
 Kocherlakota Says FOMC Goes Too Far With 2014 Rate Pledge: http://www.bloomberg.com/news/2012-08-17/kocherlakota-says-fomc-goes-too-far-with-2014-rate-pledge.html
Copyright © 2008 The Big Picture. All rights reserved.