Tuesday August 25, 2015 - 14:08:58 GMT
Share This Story
Global-View.com - www.global-view.com
Ms. Yellen: It is Time to Muzzle Your Troops
I was having a discussion yesterday about being time to muzzle Fed officials who seem to enjoy the limelight by stating their views on monetary policy with no regard to the impact on markets. This was the case late Monday when Atlanta Fed President Lockhart spoke just before the equity market was about to close and knocked share prices down. On August 21, when equity markets were under severe pressure, St. Louis Fed President Bullard made unscheduled comments on Sirius XM of all places that seemed to throw fuel on the fire. The point is not what he said but that he spoke at all
I was watching CNBC this morning and Jim Cramer echoed similar thoughts. He said his fear was a Fed official saying something around midday like all is well for a rate hike and rocking a market trying to recover. If this was a team or company, those speaking out of line would be fired. This is not possible with Fed officials, who have no fear of losing their jobs.
It is not my role to tell FRB Chair Yellen what to do but it is about time for Fed officials to show some responsibility or at least some market sense and stay quiet when trading is in turmoil. It is like a bunch of academics who seem more interested in grabbing headlines than the impact they might have on markets.
So Ms. Yellen, please take control and have the Fed speak with one voice. I realize the FOMC is made by consensus consensus encompassing differing opinions but I implore you to gather your troops and think about the impact on markets when they voice their opinions. It is not just traders but investors who are being impacted. Ask whomever sold GE or Chase at the opening yesterday and got filled 20% under the actual price when markets were in panic mode.
Jay Meisler, founder
Global Traders Association
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."