…that the Fed is not out of ammunition. The latest is from New York Fed Dudley:
“We are not out of ammunition,” Dudley said in the text of a speech prepared for delivery before a gathering at the United States Military Academy at West Point, New York.
That line is becoming a “standard” for a group of Fed officials that include Bernanke. My take:
- Either they “lost the key to the armory”, or
- They feel that´s the right way to “manage expectations”
And both reasons spell trouble.