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Strategies & Market Trends : Classic TA Workplace

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From: Henry J Costanzo12/13/2005 2:31:33 PM
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FFunds 4 1/4.

Language changed........

Policy no longer described as "accommodative"......but new language states "some further measured policy firming likely to be needed"......Hard to escape implication from that wording that policy still considered "accommodative"....and that accommodation will be removed at a measured pace.

IMHO new language, but no change in message......which remains basically hawkish.....

Market reaction..... responding positively....probably focussing on mere fact that language changed. Would expect the customary Yo-Yo effect to come into play shortly, as well as realization that nothing has changed......
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