A Bond Maven Reads the Newswire, from George Zachar
BN 11:08 *POOLE SAYS HE "DISTRUSTS" SURVEYS OF INFLATION EXPECTATIONS
This is the new news, to me. Everything else Poole said today is "I am above the fray" claptrap. The quote above is the first indication I have seen that the Fed is walking away from a metric they have consistently touted, to wit, that "inflation expectations" can be measured and used as a critical variable. We know that the TIPS spreads are FUBAR for a host of reasons. Now, if they "distrust" the surveys, how the heck are they supposed to straightface us with "well anchored" expectations? It's no coincidence that those surveys have been creeping up.