Fed Speak

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.

BREAKING DOWN '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. Pale Recession

    A phrase used in May 2008 by former Federal Reserve Board Chairman ...
  2. Greenspan Put

    A description of the perceived attempt of then-chairman of the ...
  3. Infectious Greed

    A phrase used in his July 2002 testimony before the Committee ...
  4. Alan Greenspan

    The former chairman of the Board of Governors of the Federal ...
  5. Irrational Exuberance

    Unsustainable investor enthusiasm that drives asset prices up ...
  6. Big Ben

    An investing slang term referencing Ben Bernanke. The name Big ...
Related Articles
  1. Investing

    Why Greenspan Dislikes Negative Interest Rates

    Alan Greenspan is not a fan of negative interest rates, but another former Fed chair disagrees. Who is more likely to be correct and why?
  2. Economics

    Janet Yellen Vs. Alan Greenspan: Who Is The Better Fed Head?

    We examine how these two histories Fed chairpeople differ and the impact of their views and actions on the world economy.
  3. Personal Finance

    How The Federal Reserve Was Formed

    Find out how this institution has stabilized the U.S. economy during economic downturn.
  4. Economics

    The Federal Reserve: Conclusion

    The Fed has more power and influence on financial markets than any legislative entity. Its monetary decisions are intensely observed and often lead the way for other countries to take the same ...
  5. Economics

    The Federal Reserve: Introduction

    Most people are aware that there is a government body that acts as the guardian of the economy - an economic sentinel who implements policies designed to keep the country operating smoothly. ...
  6. Economics

    Which Way Will Fed Chief Yellen Move Next?

    Nothing has more impact on investments than Federal Reserve language and policy. So what’s likely to be Janet Yellen's next move?
  7. Economics

    The Federal Reserve: The FOMC Rate Meeting

    So far we've learned about the structure of the Federal Reserve and its duties, the Federal Open Market Committee (FOMC), the tools of monetary policy and the federal funds rate. Now we're going ...
  8. Economics

    What are the Federal Reserve Chairman's responsibilities?

    Learn about the duties and responsibilities of the chairman of the Federal Reserve Board, including testifying before Congress and as chair of the FOMC.
  9. Fundamental Analysis

    3 Times the FOMC Got It Right This Century

    Learn about three times that the Federal Open Market Committee (FOMC) and the Federal Reserve took positive steps to help the economy in the 21st century.
  10. Professionals

    The Federal Reserve Board

    The Federal Reserve Board
RELATED FAQS
  1. What is a Greenspan put?

    Only five months into his tenure as Federal Reserve Chairman, Alan Greenspan faced his first crisis: the October 1987 stock ... Read Answer >>
  2. What does 'froth' mean in terms of the real estate market?

    On May 20, 2005, while addressing the Economic Club of New York, the now former Federal Reserve chairman Alan Greenspan commented ... Read Answer >>
  3. How successful have "dove" Federal Reserve heads been in the past when it comes to ...

    Review a short history of "dovish" leaders of the Federal Reserve, who use U.S. monetary policy to reduce unemployment through ... Read Answer >>
  4. What is Black Monday?

    Monday October 19,1987, is known as Black Monday. On that day, stockbrokers in New York, London, Hong Kong, Berlin, Tokyo ... Read Answer >>
  5. What is the long-term sector outlook for financial services?

    Read about a few potential threats to the remarkable levels of growth in the financial services sector that have occurred ... Read Answer >>
  6. Who controls the Federal Reserve Bank?

    Read about the ownership and control of the Federal Reserve, the most powerful financial institution in the world and the ... Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center