Much Ado About Nothing?
With no major announcement from Bernanke on Friday, some arm-twisting might be needed before a consensus is reached in the Fed.
After the continual buildup during the past few weeks of "Will he, or won't he?" conjecture, Federal Reserve chairman Ben Bernanke's speech at Jackson Hole, Wyo., finally came and went with no overt innuendo of the Fed's next move. The text of his speech, the tone of his voice, and even his body language have likely been picked apart ad nauseum by Fed watchers.
However, it appears that the Fed's next move won't be decided until its next meeting (Sept. 20-21). Typically this meeting is a one-day affair, but it has been scheduled for two days to provide additional time for the Fed to analyze and discuss its potential next moves. This telegraphs to us that the Fed members are not all on the same page. Considering three members dissented with the change in language after the last meeting, a few arms may need to be twisted before a consensus is reached.
David Sekera does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.