The Fed’s implicit tightening and simplification of monetary policy was not apparent merely in the message conveyed by the FOMC moments ago: it was also clearly visible in the grammar of the statement itself, and specifically in the word count. Because after hitting a record 895 words last month, the October statement tumbled in complexity and its message to just 707 words: this is also the fewest words the Fed used to explain its actions in over a year, or since July of 2013.
To those who lament the Fed’s inability to explain what it will do, fear not: we are quite confident that within a year, we will see the first 1000+ word FOMC statement as the Fed finds itself in the same place it was after QE1… and QE2… and Operating Twist… and so on.
via Zero Hedge http://ift.tt/1wDVlnb Tyler Durden