In his reaction to the Fed's interest-rate decision Tuesday, Janney Montgomery Scott chief fixed-income strategist Guy LeBas channeled the baseball purgatory of Mudville in a note to investors by asking: “Has the mighty Bernanke struck out?”
No, but the committee’s action was “at best a bunt, with the opportunity for the Fed to swing at another pitch come the … annual Jackson Hole symposium,” LeBas said.
That’s the gathering in Wyoming of central bankers, policymakers, economists and academics sponsored by the Federal Reserve Bank of Kansas City usually held the last weekend of August.
“That forum is notorious for introducing new policy mechanisms and implicitly running them by the ultimate umpire, the financial markets,” LeBas said.
And that could mean some more wild days in the markets later this month.