New Sentiment Survey Shows Investors Are 'Very Mixed' On Fed Language Tweak
Last week, the Federal Reserve removed "patient" from its latest meeting statement. But how are individual investors responding?
As the association writes, "responses were very mixed."
"The largest group of respondents, 25%, agreed with or otherwise approved of the message," AAII wrote. Twenty four percent said the change wasn't significant, 10 percent "disapproved" of the statement, 9 percent said "interest rates should be raised," and 9 percent said "a rate hike is forthcoming."
Finally, 6 percent noted they expected the word change.
AAII provided a sample of investor responses, which is detailed below:
- “All of this parsing of words tells me that [the Fed] is doing a good job and not trying to stampede the crowd in either direction.”
- “I think it is about time that they raise interest rates. The economy has been doing well enough to have interest rates raised.”
- “Big mistake. The so-called recovery is very fragile.”
- “Gobbledygook. Fedspeak is right up there with doublespeak.”
- “Simply one step closer to raising the interest rate.”
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