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New Sentiment Survey Shows Investors Are 'Very Mixed' On Fed Language Tweak

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New Sentiment Survey Shows Investors Are 'Very Mixed' On Fed Language Tweak
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Last week, the Federal Reserve removed "patient" from its latest meeting statement. But how are individual investors responding?

The American Association of Individual Investors released a new Sentiment Survey designed to gauge AAII members' reactions to the language change.

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.

Related Link: Fed Statement: A Play-By-Play Recap Of Janet Yellen And 'Patient' Mania

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.”

Posted-In: AAII Federal Reserve Patient Sentiment SurveyNews Events Economics Federal Reserve Best of Benzinga

 

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