Many FOMC members have given speeches or interviews since the last FOMC meeting and the message has been fairly uniform. Paraphrasing: ‘ We’re not ready to cut the Funds rate until we have more confidence inflation will return to 2.0%, nor do we think there will be a need to increase the Funds rate.” J.P. Morgan quantifies FOMC speeches as to whether they tilt Dovish or Hawkish and the Sentiment Score has done a good job of leading the direction of FOMC policy moves. Remember the Federal Reserve believes Forward Guidance is an important component of monetary policy. Almost by definition...
