CBC Partners with Stifel Financial Corp. to Discuss the Appropriate Use of the Word "Appropriate" in Policy

Provided by: Lindsey M. Piegza, Ph.D., Chief Economist

In October the Fed opted to lower rates for the third time in three months. While the decision itself was largely priced into the markets, the language in the accompanying statement was seen as the wild card, potentially setting the tone for the future pathway of policy. Removing the phrase “as appropriate,” the Committee seemed to signal a bias towards pausing after a third-round cut. Later, however, the Chairman reaffirmed policy makers’ data dependency and vowed to continue to act as appropriate despite the removal of that phrase from the October statement, reopening the door for potential further Fed action. Parsing through the Fed-speak, it appears the Fed would like to pause and is hopeful a stabilizing economy will allow it to do so. However, with a marked deterioration in the data, the Fed remains willing to reengage and provide additional support as needed.  

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Stifel Financial Corp. is a diversified financial services holding company that conducts its business through several wholly owned subsidiaries. Its primary broker-dealer subsidiary, Stifel, Nicolaus & Company, Incorporated, is a full-service brokerage and investment banking firm established in 1890. Stifel Financial Corp. was formed as a holding company in July 1983 and is publicly traded on the New York Stock Exchange under the symbol "SF."