Fed Speak

AAA

DEFINITION of 'Fed Speak'

A phrase used to describe former Federal Reserve Board Chairman Alan Greenspan's tendency to make wordy statements with little substance. Many analysts felt that Greenspan's ambiguous "Fed speak" was an intentional strategy used to prevent the markets from overreacting to his remarks.

INVESTOPEDIA EXPLAINS 'Fed Speak'

Greenspan, who was chairman of the Fed from 1986 to 2006, was known for making vague statements that were not easily interpreted. For example, following a speech Greenspan gave in 1995, a headline in the New York Times read, "Doubts Voiced by Greenspan on a Rate Cut," while the Washington Post's headline that day said "Greenspan Hints Fed May Cut Interest Rates". Greenspan's successor, Ben Bernanke, is known for making more direct statements.

RELATED TERMS
  1. Financial Accelerator

    A financial theory that states that a small change in financial ...
  2. Big Ben

    An investing slang term referencing Ben Bernanke. The name Big ...
  3. Gross Domestic Product - GDP

    The monetary value of all the finished goods and services produced ...
  4. Federal Reserve Board - FRB

    The governing body of the Federal Reserve System. The seven members ...
  5. Recession

    A significant decline in activity across the economy, lasting ...
  6. Unemployment Rate

    The percentage of the total labor force that is unemployed but ...
Related Articles
  1. The Federal Reserve
    Economics

    The Federal Reserve

  2. Ben Bernanke: Background And Philosophy
    Economics

    Ben Bernanke: Background And Philosophy

  3. Alan Greenspan: 19 Years In The Federal ...
    Economics

    Alan Greenspan: 19 Years In The Federal ...

  4. How To Talk Like An Investor
    Investing Basics

    How To Talk Like An Investor

comments powered by Disqus
Hot Definitions
  1. Walras' Law

    An economics law that suggests that the existence of excess supply in one market must be matched by excess demand in another ...
  2. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will ...
  3. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  4. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  5. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  6. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
Trading Center