Chairman, Greenspan, FED discussed on Capital Ideas Investing Podcast - Alan Greenspan: The Man Who Knew

Automatic TRANSCRIPT

And so you actually kill your and credibility if you guy too much i believe and then you end up saying well the data dependent which means we haven't decided what we're gonna do which undermines the whole communication so i think that greenspan insulate period had a good balance west sometimes there was communication he would garin kong to congress and testify quite clearly at some points and send a deliberate signal he did a lot of off the record spinning of the press and people knew that set and journalists had always had access to the chairman ensure read that columnist you're getting a hint about what rates were going to do so greenspan did communicate other times he didn't tom pappas waffled just like you said i think it was quite a good balance and i think make one point on this greenspan because he dominated the feds say much he was known as the meister hold of the communication coming out of the federal reserve was essentially from one person the chairman if you ask the same question today how much of the signal coming out of the fed is janet yellen the chat it's probably fifty percent because people listen to all the other governors and to the president in your fat everyone follows their speeches you know it so there's a whole industry obviously following the speeches and all the fixed income folks them yeah and say the result is that you have this cacophony of signals coming out of the fat in it's quite hard to figure out where it's getting but also when the fed is being attacked by donald trump by people in congress or by journalists or wherever it is there isn't a clip back because this too many voices with greenspan that is some tried to attack the fed.

Coming up next