Is this sounds thinking (see continuation of this posting for MSNBC story)? To take a $250,000 speaking fee and make market moving comments to a hand picked few of the richest hedge fund managers in America? Not a week after retiring and before the new Fed Chief even utters his first word?? Doesn’t make sense to me and is another reason I’m glad I’ve renamed my blog Alan’s Bubble (alansbubble.com or cubetrader.com).
Alan Greenspan’s Lehman visit making waves
Bond, dollar markets churned by rumors ex-Fed chief talked about rates
Updated: 12:18 p.m. ET Feb. 8, 2006
– Just a week after leaving the Federal Reserve, former Fed Chairman Alan Greenspan spoke at an event hosted by Lehman Brothers on Tuesday, a source said Wednesday.
“He did speak at Lehman [Tuesday] afternoon,” said the person at Lehman, who did not attend the event. Greenspan retired from the Fed on Jan. 31 after 18-1/2 years at the head of the
Greenspan chaired his last Federal Open Market Committee meeting on Jan. 31 when the Fed raised official interest rates for the 14th time in the current tightening cycle to 4.5 percent.
“Board members who complete their terms may meet with and speak to groups without restriction, provided that they reveal no confidential information,” a Fed spokesman said, without confirming whether Greenspan made the appearance.
Greenspan’s office declined to comment.
Reports, which could not be immediately confirmed, said Greenspan had said the markets were underestimating the amount of tightening the Fed still had to do.
Short-term rate futures drifted lower on the rumors of Greenspan’s speech, lifting the chances that fed funds will hit 5 percent by mid-year to as high as 76 percent from 66 percent earlier.
The U.S. dollar edged to session highs after a report of Greenspan’s remarks circulated in the market, with a trader citing reportedly bullish comments Greenspan made on the economy.
“There was some rumor that Greenspan spoke … and was upbeat on the economy, which may be dollar positive,” and may be why the dollar is gaining strength, said Grant Wilson, senior foreign exchange trader with Mellon Financial in Pittsburgh.