Stop me if you’ve heard this one before…Around 2 PM Eastern Time, you get “breaking news” that the Fed will not be raising rates. Stock gyrate wildly for a few minutes, followed by a rally-inducing statement from the Federal Reserve governor, which goes something like this- ‘While the economy has strengthened, we need just a LITTLE BIT more time to confirm the trend, as pockets of weakness still exist. Rate hikes are right around the corner- just not quite yet!’ Sound familiar? It should, as we’ve heard this at nearly every FOMC meeting since the last crisis abated (at least on paper) at the end of the 2000’s. It happened again today, as Janet Yellen told us to hold up for the time being. But really- it’s coming!
Whether you agree with what the Fed is doing or not, it is truly remarkable how each time we hear this, the media report it like it’s the first time we’re hearing this. For those who need more concrete evidence, just go to Google, set the time range for 2013, and type in the keywords “Fed”, “rate hike”, and “sooner than expected”. Or, just look at screenshot attached to the right, courtesy of “Rudolf E. Havenstein” on Twitter.
For those who have paid attention to these repetitive Fed announcements since the charade began, it feels like Bill Murray in Groundhog Day- just living the same day, over, and over, and over. (And for bloggers, typing in similar posts, over and over and over again.) Well, enjoy it while it lasts, I guess, however long that may be. It seems like an eternity while going through it, but you’ll be waking up next to Andie MacDowell eventually!