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‘Adapting As We Go’
There were two main takeaways from Jerome Powell's press conference on Wednesday, when the Fed lower
Poor Jay.
If he leaves rates unchanged and inflation picks up again, he’ll be blamed.
If he shocks everyone by raising rates to tame inflation and a recession follows, he’ll be blamed (by Trump and Elizabeth Warren probably) for all the people whose joblessness he caused.
Possibly, but it seems right now the chaos and uncertainty caused by Lord Trump of the Tiny Hands and his court jester stooge are providing ample cover for Powell. No one really knows the outcome of the Trump chaos so Powell is covered for now. Besides Trump ignores all relevant info and there is no one in the administration who actually has any influence on the boss so right now nothing is going to happen until trump’s fever dream passes.
H–you’re the best. “This isn’t a game of telephone…” I almost spit out a drink. Powell deserves the sarcasm b/c it’s so laughable to suggest the ramp in expectations back then had no impact. Everyone w/ half a brain knew it.
I do feel sorry for him. He looks like he’s in pain. And he probably is in pain from trying to maintain some semblance of reason when he’s surrounded by administration lunatics pretending to be competent policymakers. Despite his dance w/ the truth, Powell’s comments had a degree of reason lacking entirely from most of the crap spewed by anyone associated w/ the trump.
Will he last until 2026? He may. But he’s definitely on the short list of targets to take the blame when the economy falls apart and markets sink.
Once again, the cure-all is more MAGA — Make Anchors Gravitational Again !!
The BEST thing about Jay Powell’s presser and Bill Dudley’s interview on BBerg was that I got to feel as smart as a Federal Reserve chair and an epic NY Fed Governor. As far as I can tell, they have no more idea or cnviction about what’s going to happen next than I do.