[credit provider=”Bloomberg Television”]
The transcripts of the 2006 FOMC meetings are turning into a goldmine for comments that the Fed members wish they hadn’t made.This quote from the October transcript is the second from Richard Fisher (h/t Crossing Wall Street):
MR. FISHER. …The bottom line is that I think we’ve made substantial progress. But I think we have to be very mindful, Mr. Chairman, about perception if we’re to influence what really counts, which is inflationary expectations, and about whether those expectations are measured accurately by TIPS spreads, which I personally doubt. One need look no further than this morning’s Financial Times editorial or Bill Gross’s recent client letter—I’ve known Gross for 20 years, and I know he’s an oddball. Actually, I’d like that word struck from the record. [Laughter]
MR. MOSKOW. What do you want to substitute? [Laughter]
MR. FISHER. He’s increasingly addled, but his words do carry weight. In his recent client letter, he says, “Inflation is levelling off at admittedly unacceptable levels.” Hence my careful reference to the word “comportment.” I think first about the immediate statement, and I want to come to that.