The 6 Worst Fed Chair Quotes of All Time

Fed Chair Janet Yellen will give a statement tomorrow (June 14) in which she is expected to raise interest rates. Unfortunately, a Fed chair statement can render even the most perceptive of financial analysts utterly confused.

Especially when the "hawks" in the chair's posse say one thing, and the "doves" say something completely different. (And if you don't know what these terms mean, check out the sidebar to your right.)

What Are Fed "Hawks" and "Doves"?

Good question!

A "Fed hawk" is a Federal Reserve policymaker who tends to favor high interest rates and stricter monetary policy to keep inflation in check. "Fed doves" prefer the opposite (typically) - lower interest rates and looser monetary policy to encourage economic growth and spending.

Famous Fed hawks include Dallas Fed President Richard Fisher and Federal Reserve Vice Chair Stanley Fischer. Famous Fed doves include current Chair Janet Yellen and her two predecessors, former Chairmen Ben Bernanke and Alan Greenspan.

Despite Yellen's dovish tendencies, she surprised the general public in May 2015 when she expressed enough confidence in the U.S. economy to suggest raising interest rates soon.

But regardless of a Fed chair's "dovish" or "hawkish" economic outlook, all of these "birds of prey" have one thing in common...

They love yapping to the public.

Amid speeches, public appearances, interviews, academic panels - you name it - Fed chairs squawk more than CNBC does every morning.

Money Morning Chief Investment Strategist Keith Fitz-Gerald said it best: "The Fed never met a printing press it didn't love."

Those were Keith's exact words in August 2016, when he admonished Yellen and her FOMC posse for confusing the heck out of the general American public.

They do it on purpose, Keith explained, to keep everyday investors perpetually confused and unaware that the Fed actually lost its focus on average Americans a long time ago.

"Now it's the big banks and crony capitalists in Washington who have become the protected few," Keith explained.

If you've not taken the time to explore some of the nonsense spewed by the last three Fed chairs, then have a look.

And if you find yourself utterly baffled after reading each quote... well, that means we're on the same page.

But don't fret, because we also have a solution to help you protect your money amid interest rate hikes... and the accompanying verbiage.

The 6 Worst Fed Chair Quotes of All Time

Again, it's OK if these statements confuse you.

In fact, headlines about Fed chair-inspired confusion are common after the "doves" and "hawks" squawk:

"Traders look to data as Fed confuses" - CNBC, March 23, 2016
"The Fed's commentary is confusing stock markets" - CNN, Sept. 22, 2015
"Greenspan Concedes Error on Regulation" - The New York Times, Oct. 23, 2008
"Greenspan Will Be Confusing, but So Is the U.S. Economy" - The Washington Post, April 17, 2002
"Greenspan: 'If I've made myself too clear, you must have misunderstood me'" - UK Independent, July 13, 1996

So, now that you're aware of just how baffling "Federal Reserve chair speak" can be, let's get you prepared ahead of Yellen's FOMC speech tomorrow. We've got just the advice...

Make These Moves Before the June 2017 FOMC Meeting

Exchange-traded funds (ETFs) are an easy solution for portfolio protection and profits if the Fed raises rates.

"ETFs basically let you trade an entire sector instead of having to pick and choose specific stocks to trade within a sector. ETFs are also a great way for you to hedge against rising interest rates," Money Morning Options Trading Specialist Tom Gentile said on May 26.

For stocks, Gentile recommends monitoring the SPDR Dow Jones Industrial Average ETF (NYSE Arca: DIA). For bonds, he recommends monitoring the iShares 20+ Year Treasury Bond ETF (NYSE Arca: TLT).

Here's more on how to prep for tomorrow's big reveal...

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