Headwinds, Fiscal Ciff and a Dow Peak

April 1, 2014

Yesterday March 31, 2014 the image of Mr. Bernanke’s successor was all but fixed in the bottom right hand corner of the BNN television image. Her statement for the day repeated in print across the bottom of the screen from early morning till evening was that the U.S. economy still needed support. At first bond yields looked to be climbing, but as the day wore on they began steadily declining and by day’s end all but the 10 year bond yield had declined while the Dow Jones index of industrials was again soaring.

December 19, 2023 am

“Headwinds” “Cliffs” and A Dow Peak

On December 18, I saw the US Federal Reserve chairman interacting with journalists as the Dow Jones Industrial Average neared 250 points on its way to closing up over 290 and a new record. Journalists sounded tepid in their questioning; as usual the chairman seemed nervous as he cloaked his comments in terms such as the now central to financial talkers usage “headwinds”, “transparency” and even that tired old “fiscal cliff”. And though all of the questions I heard being put to the chairman were disappointing, one asking if he had done anything during his now concluding tenure that in retrospect he might not have done stands out because his answer was surprisingly self congratulatory as he talked of his successes despite hardships like ” headwinds” and even the “fiscal cliff”.

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