Greenspan goes from Patient to Coy

“I’m not going to suggest to you I can give you a pattern of what we may or may not do over the next quarters and potentially years. We try to be forward looking, not only in terms of whether we’ll move or not move on a particularly date, but what does that imply on a whole program of change, if indeed we are changing.” -Fed Chief Alan Greenspan

Got that? If you don’t understand it, allow me to translate:

When things were shakier, we insisted that we would be patient keeping rate slow. Now we see concrete readings of things heating up, and so, instead of saying we will be patient, I must demurely revert to my shy schoolboy “Aw, shucks, I dunno” answer.

That means rates are likely to start going higher. The only question is whether it is sooner or later.

Greenie added that prior inaction Was not an accident: “It’s been an active program. Where we were is where we wanted to be . . . we are still developing the means by which we formulate policy.”

Greenspan Says Rates ‘Must Rise’ But Signals Fed Won’t Act Soon
April 21, 2004 2:58 p.m.,,SB108255590132689247,00.html

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