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Powell Emphatically Dovish: Fed Now Focused On Protecting Labor Market
"The time has come for policy to adjust," Jerome Powell said Friday, during a hotly-anticipated keynote address in Jackson Hole.
The Fed chair broke little new ground in his speech, and indeed no surprises were expected. That said, Powell's cadence regarding the balance of risks -- which is to say his tone in conveying the Fed's inclination to overweight downside risks to employment in the decision calculus around the dual mandate -- was insistent, if not quite urgent.
The jobless rate, he rem
Powell must be taking some humor lessons from you Mr H.
I am of the opinion that Putin rocked the transitory boat.
Claudia Sahm must be very happy with this.
I think Powell has a chance at a favored place in central bank history. The inflation surge was global, in developed and emerging countries alike, with and without stimulative policy, and fundamentally due to an unforecastable 100-year event, so he won’t be greatly blamed for it. If the Fed brings inflation back to target with only mildly weak labor conditions and a short, shallow recession in 2025, the verdict will be positive. However, that outcome depends significantly, I think, on the political events in November.
+1
Except w/ regard to balance sheet reduction, the Fed’s relevance to future market moves is rapidly diminishing relative to other domestic and international, economic and political variables.