No, because forward guidance meant to stimulate the economy may indeed raise interests rates.
Forward guidance, always a curveball with Apple, will be more heavily scrutinized this quarter than most.
Even after defending quantitative easing, Kocherlakota said he prefers to use forward guidance to affect market perceptions.
The Fed also extended its forward guidance for ultra-low rates, or outlook for interest rate levels, until mid-2015.
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There is no forward guidance that can reduce nominal interest rates, but does that mean forward guidance is impotent.
We know that railroads and shippers offered terrific earnings reports and forward guidance.
No possible forward guidance can get the 5 year rate under 0.
Interestingly, the Chairman made no mention of the new forward guidance that was proposed by San Francisco Fed Chief Janet Yellen.
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There was speculation that the Fed may change the format of its forward guidance from a calendar-based outlook to an outcome-based one.
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Margins really are the key to the report, as well as forward guidance, said one hedge fund analyst who declined to be named.
The next step would be to prime the market by modifying their forward guidance on the federal funds rate while beginning to withdraw reserves from the system.
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Does the SPR offer the White House a tool for influencing the oil market in any way comparable to how forward guidance by the Federal Reserve affects bond markets?
Forward guidance is important because it locks the Fed into a future commitment to, say, keeping rates low, which removes some of the uncertainty surrounding spending decisions by consumers.
This meeting will feature a press conference from Chairman Ben Bernanke and market participants will look for more forward guidance on Fed policy, particularly after stronger-than-expected housing and jobs data.
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In addition to purchasing mortgage-backed securities, the committee said Operation Twist, the bond swapping program, will be extended through the end of the year and its forward guidance through 2015.
The Bernanke Fed also extended the forward guidance for the federal funds rate to remain in the zero-bound to mid-2015, while announcing that Operation Twist would remain active at least through the end of the year.
While Bullard said forward guidance is ineffective, and asked for a modification in the flow rate of asset purchases (Fed code for more money printing), they both agree the Fed has to do more to stimulate the economy.
The performance of the industrials versus the transports is a huge warning that when third quarter earnings begin in October, misses on the revenue line or EPS, or reduced forward guidance will trump the run-up for stocks because of the quantitative easing operations here and abroad.
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As mentioned above, Bullard did say QE is a more direct, and preferable way, for the Fed to act (given nominal rates in the zero range and forward guidance as the other major tool), but said he sees asset purchases affecting labor markets in the same way as interest rate moves.
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Last week, the Fed released minutes for the mid-October FOMC minutes where they agreed to analyze the possibility of enhancing or replacing their current forward-guidance for zero-bound interest rates.
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The statements in this news release regarding the business outlook, expected performance and forward-looking guidance, as well as other statements that are not historical facts, are forward looking statements.
Slightly less than a quarter of respondents described earnings or forward-looking guidance as disappointing.
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Importantly, he spoke of the transition to a new forward-rate guidance, possibly tied to economic indicators such as inflation and unemployment.
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The Chairman of the Federal Reserve defended his decision to embark in an open-ended, third round of quantitative easing (QE3), extend Operation Twist, and extend their forward-rate guidance to 2015.
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This time, the top- and bottom-line numbers may actually be much less important than the company commentary and the guidance going forward.
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Intellectual Ventures engages with companies of all sizes to meet their current business needs and provide strategic guidance on forward-thinking intellectual property.
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Aside from being a difficult disease to treat, scant data from its failed trail with the drug Rituxan leave investors with little guidance going forward.
So management going forward wants to issue quarterly guidance in a realistic range.
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