A: One Fed official just said “We’re keeping rates low to get growth going” last week, and now another said “We’ll hit the brakes when needed.” B: Whether or not it is deliberate, the Fed’s good cop, bad cop strategy sends the message the markets need. Note: “Good cop, bad cop” is a psychological tactic used in negotiation and interrogation. Its tactics involve a team of two interrogators who take apparently opposing approaches to the subject. The “bad cop” takes an aggressive, negative stance towards the subject, making blatant accusations, derogatory comments and threats. This sets the stage for the “good cop” to act sympathetically, appearing supportive and understanding, and in general showing sympathy for the subject. The subject may feel they can cooperate with the good cop. They may trust the good cop and provide the information the interrogators are seeking. In a word, this is a tactic used to to influence other people similar to “carrot and stick.” |