No one ever accused the Fed of producing compelling reading material. For a group of decision makers that prides itself on communication (i.e. “forward guidance”), they sometimes fail to convey what they want to convey to markets that, since the crisis, hang on their every word.
Indeed, “communication” has become a policy tool of sorts and very often “jawboning” is the preferred method of moving markets – especially when actual policy maneuvers have reached their outer limits. Perhaps the most enduring example of this phenomenon is Draghi’s “whatever it takes” moment in which the former Goldmanite “saved” the Eurozone periphery from certain implosion (marked by 10Y yields above 7%) by simply assuring investors that the ECB would not let beleaguered governments lose market access.
As explicit as the world’s top central bankers can be, there are those of us who would prefer to have a visual and to that end Deutsche Bank is out with “A visual guide to the December FOMC statement.” Below, find the highlights.