A headline at the top of the front page of the Wall Street Journal:
Fed Doubts Grow on 2015 Rate Hike
This might have been news last month when the Fed decided not to raise rates and Goldman Sachs, the most connected investment bank on the planet, stated flatly that the rate rise would not come until 2016. At best this should have been a one or two-paragraph piece on one of the back pages of the Money and Markets section. The statistics, including the September unemployment report, have been nothing but disappointing. Commodity and emerging market equity and currencies have been in the toilet for months at the mere prospect of a rate hike, and its given US equity and junk bond markets heartburn as well. However, with the Fed, nothing is official until it has been confirmed by the Journal‘s Fed flack in residence, Jon Hilsenwrath. This headline tells market participants what they already know: free money for many more months. Reading the article would be a waste of time. The stock market rallied today, but as SLL has said: if all equity markets have going for them is Fed freebies, look out below.
“However, with the Fed, nothing is official until it has been confirmed by the Journal‘s Fed flack in residence, Jon Hilsenwrath….”
This makes sense, but how does SLL know this is true. or can you say?
It’s not officially true, but Hilsenwrath is the one with whom the Fed plants its stories when it wants its policy views known in the financial community. Hilsenwrath has become known as the Fed’s mouthpiece. I do not think it is healthy for the Journal’s long-term journalistic integrity to have a reporter who serves this function.
Thanks for the information. I will be be better prepared for other “announcements disguised as articles”.