Ben Speak

The Market's are in a holding pattern right now.
The 10 Yr opened a little lower than yesterday but it'll just flat line for a while.
You see, we're all waiting on the Fed.

The Fed's will announce today their decision at approximately 11:15 Pacific Time.
They can only do one of three things:
they can raise, lower, or hold the course on interest rates - simple, eh?

Actually, most everyone knows the Fed's will stay right where they are for now.
So why are millions of people holding their breath?

Along with the actual decision, we'll also get a little narrative - "Fed Speak".
It's the words, the tone of those words, and the manner in which they are used that the world is hanging on for.

Boy, that has to be a lot of pressure.
Get one word wrong and screw it up, and the whole world changes.
That certainly tops the typical wedding toast.

Maybe that's why people think the most influential person in the country, or even the entire world is NOT our President, but the Fed Chairman.

On of the best at understanding how his inflections could positively or negatively change the markets in the way he wanted may have been Alan Greenspan. While some have criticized his convoluted and confusing statements as being overly hard to decipher, others credit him with saving the US from devastating economical disaster back in late 1987 with his simple yet strong statement, "the Fed stands ready to provide all necessary liquidity".
It may be wierd but I remember watching him say that on live TV that day.


(I know - OOOOOOOOOH!)

From Wikipedia:
Greenspan was famous for his ability to give technical and confusing speeches. U.S. News & World Report reported that, "Few can confuse Wall Street as thoroughly as Federal Reserve Board Chairman Alan Greenspan can." ^[11] Greenspan was sometimes so hard to understand that the Motley Fool radio show included a game called "What Did the Fed Chief Say?", where contestants were challenged to interpret snippets of Greenspan's speeches. Greenspan mocked his own speaking style in 1988 when he said, "I guess I should warn you, if I turn out to be particularly clear, you've probably misunderstood what I said."

When the actual press release comes out, I'll post a link to it here.

Have a great day but be very careful of what words you choose and how you use them.