We keep hearing…

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:

  1. Either they “lost the key to the armory”, or
  2. They feel that´s the right way to “manage expectations”

And both reasons spell trouble.

2 thoughts on “We keep hearing…

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