Josephine Witt’s Reign Is Over Or, Central Banks May Actually Mean It This Time

Josephine Witt’s Reign Is Over Or, Central Banks May Actually Mean It This Time

For all the talk about how investors and traders hang on every word that comes out of policy makers' mouths, when you actually think about it, central banks' reflexivity problem effectively allows markets to interpret everything as dovish. Or, put differently, every hawkish lean is interpreted as a bluff that is immediately called and every dovish spin is just another reason to BTFD. So in a way, it's not entirely clear who's "guiding" who in the whole forward guidance-markets relationship. Re
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