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Powell Don’t Talk Much Like Yellen – Jury Still Out On Whether That’s Good Or Bad

I'm sorry, but I'm not sure doublespeak and bluntness are going to be compatible forever.

Ok so in sum, on the Fed: three hikes (total) projected in 2018, a steeper trajectory in 2019 and 2020, upward revisions to growth this year and next, lower unemployment trajectory across the board, and a modest inflation overshoot on core next year and on headline and core in 2020. Here's what Neil Dutta, head of U.S. economics at Renaissance Macro Research had to say: So, next year, the median FOMC official sees a slight overshoot on inflation (+0.1ppt) another 0.3ppt drop in the unemployment rate and just one more rate hike. That's somewhat less than you'd expect in a standard Taylor Rule type model. That is not really hawkish, in my view. Buy stocks. Buy front end. Inline with what I was suggesting earlier, the statement was kind of lukewarm on growth, describing economic activity as rising at a “moderate” rate, while describing job gains “strong” - that's as opposed to the "rising at a solid rate" language and the less exuberant take comes courtesy of household spending and business fixed investment having "moderated". As far as the risks, they're “roughly balanced” and of course the committee is monitoring shit "closely". On the rate hikes, it's still “furth
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1 comment on “Powell Don’t Talk Much Like Yellen – Jury Still Out On Whether That’s Good Or Bad

  1. bunny says:

    Looks to me like Powell is on a dog leash held by Trump & Mnuchin who want the dollar ever lower. Yi Gang is also on a leash to Xi. It’s dog days at these two key central banks. Woof, woof!

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