You are right - the preternaturally cautious Jerome Powell made a whopper when he told markets in 2021 that he foresaw no rate hikes through 2024. There is no reason for a Fed chief ever to make a statement like that, especially when the economy is projected to grow 6.5%.
He has been clawing back credibility ever since. He seems to have learned that Fed communications is not meant to inform; it is meant to support policy objectives. That is why markets are paying more attention to flattening numbers for inflation than they are to hawkish Fed statements.
Agree. I too am encouraged by the change in policy from Jerome Powell. I also agree, the other part of the equation is spending. The 'governable' congress seems to have kept digging, creating a deeper hole for Powell to fill in. Let us hope the 'ungovernable' congress won't pass anymore trillion dollar spending laws with only a few people knowing what is actually in them.
Of all who are at fault for high inflation rates, the fed is the only one to admit their role and correct course. Hats off to them.
You are right - the preternaturally cautious Jerome Powell made a whopper when he told markets in 2021 that he foresaw no rate hikes through 2024. There is no reason for a Fed chief ever to make a statement like that, especially when the economy is projected to grow 6.5%.
He has been clawing back credibility ever since. He seems to have learned that Fed communications is not meant to inform; it is meant to support policy objectives. That is why markets are paying more attention to flattening numbers for inflation than they are to hawkish Fed statements.
Agree. I too am encouraged by the change in policy from Jerome Powell. I also agree, the other part of the equation is spending. The 'governable' congress seems to have kept digging, creating a deeper hole for Powell to fill in. Let us hope the 'ungovernable' congress won't pass anymore trillion dollar spending laws with only a few people knowing what is actually in them.