Loading ...I just read this story. I certainly would not want their job and responsibility. In a sense, they are the grandchildren and or great grandchildren of the 1913 group or the 1934 group whose jobs were simpler and they were smarter than the 1970 and 1980 groups as the “situation“ got more complicated and now these days with all the zigging and zagging hard to make predictions. So the Fed has been relegated to “day trading” the economy, is what the story sounds like to me. Constantly reacting rather than pro-acting.
Part:
“The Powell Fed, in fact, has become almost as known for its abrupt changes in direction as it has for the unprecedented levels of stimulus it has provided during the pandemic.
“What the Fed has proven is the difficulty in forecasting by both committee and consensus,” said Joseph LaVorgna, chief economist for the Americas at Natixis and former head of the National Economic Council under former President Donald Trump. “In market parlance, the Fed has bought the high and sold the low. So I do think there will be a credibility issue going forward.”
Powell’s fourth major shift raises questions about the Fed’s policy credibility