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Fed Offers Rare Rebuke Of Market Rally In Meeting Minutes
Those of you old enough to remember three weeks ago will recall that Jerome Powell and his colleagues at the Fed leaned marginally more hawkish than expected in the economic projections that accompanied December's 50bps rate hike.
Despite two consecutive downside surprises in the incoming inflation data, the median forecasts for price growth in 2023 were revised up, to the consternation of at least some market participants.
Of course, you could easily suggest the Fed was just being prudent --
They are taking a prudent course, at least in their opinion which is all that matters. The shenanigans in the House suggest another possible source of shock. They will keep going until the punchbowl is nowhere to be seen let alone empty. At this point does it really matter if a recession is called or if we get 3% inflation and 3.5% nominal growth for an extended period? It will feel really ugly in that case or an outright recession. A short soft landing at this point looks impossible.
“Those of you old enough to remember three weeks ago will recall that…”
Here is another possibility: “Those of you not too old to remember three weeks ago will recall that….”
🙂
Comment of the year so far. There’s a long way to go, though.
Three weeks is setting the bar mighty high.
I do wonder, Mr. H., if you’re chuckling when you’re typing these little sarcastic quips?
I must admit, my favorites are those referencing economists. The one about “throwing darts while blindfolded” is up there with some of the best Mark Twain aphorisms.
Three or four Fed governors on tap today. Including their Ron DeSantis clone at 1:20. Do they reinforce the message or undercut the chairman, once again?