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Is the Fed leaking?

hank
edited January 2019 in Off-Topic
I don’t ever remember news organizations being this well informed on what the FOMC statement will say hours in advance of the meeting. Where’s the suspense?

Here’s some strong tip-offs that they have leaked more to the press than has been “officially” made public:

- Friday the WSJ reported that the Fed was “considering” ending their bond sales early. The tightening process, known as “QT” (quantitative tightening) until recently had been expected to continue indefinitely.

- Recently the Fed had predicted 2 or 3 rate hikes in 2019. But today’s various news reports sound assured there will only be 1 more - and that today they’ll hold rates steady.

- CNBC, Bloomberg and other major organizations are all but quoting verbatim in the morning hours from this afternoon’s (not yet released) FOMC statement.

- Equities and most commodities are strong this morning, a sign investors expect no negative surprises from the FOMC’s afternoon announcement.

- The term “eager to please” springs to mind.


The WSJ appears to have the deepest advance insights into impending Fed policy. However, it’s hard to access without subscription. Here’s CNBC’s somewhat inferior report.

https://www.cnbc.com/2019/01/30/fed-is-likely-to-hold-rates-steady-as-it-navigates-data-blind-spots-.html

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