Clear signals from the Fed

摘要

Seldom do markets get so clear a signal about the central bank's intentions as when Federal Reserve Chairman Alan Greenspan told the House Budget Committee, less than two weeks before the Sept. 21 Federal Open Market Committee (FOMC) meeting, that the economy was emerging from its summer "soft patch" and has "regained some traction." Greenspan, who pointed to better job growth, manufacturing output, consumer spending and housing starts, was largely echoing what a number of his FOMC colleagues had already said. But, when Greenspan says it, markets take it as the last word.