NYT has this comparison of the July and Septemenber Fed statements. Look at the differences to see what the drama was all about. In years past, very few in the world paid attention to macro pronouncements. At least partly promoted by CNBC parsing of statements has now gone global. Their used to be a “briefcase “indicator where video cameras would track the size of Mr. Greenspan’s briefcase for clues on what the Fed statement would say., This is how media can create news,
Once planted, the idea mutates into multiple straw men, with both bulls and bears creating distorted versions. Bears will say, “see the economy is not recovering,” bulls will say “easy money continues, pedal to the metal” All the FED HEAD SAID was “we will wait and see,” So, bonds went up, the dollar plunged, gold soared along with stocks. Now can we get back to earnings please!