November 17, 2021

Moneybeat – Deciphering Fed speak

MARY REICHARD, HOST: Next up on The World and Everything in It: the Monday Moneybeat.

NICK EICHER, HOST: Financial analyst and adviser David Bahnsen joins us now for our regular conversation and commentary on the economy. David, good morning to you.

DAVID BAHNSEN, GUEST: Good morning, Nick, good to be with you.

EICHER: So the Federal Reserve indicated—to use the funny phrasing of Fed chairman Jay Powell—it’s “talking about talking about” changing the central bank’s policy position. Not talking about it, talking about talking about it.

David, tell me why the Fed’s signaling matters or doesn’t matter that much and why.

BAHNSEN: Well, to be clear, he said they were “talking about talking about” tapering of quantitative easing. So why don’t we just do a little background for the listeners: There are two major policy tools since the financial crisis, and then…

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