- Market events like those of two weeks ago or so will happen; the test is not whether they happen but whether they trigger wider instability
- Cautiously optimistic that inflation expectations are anchored
- Communicating when we decide to accommodate short-run shocks or trade-off between inflation and activity is essential but difficult
- Too early to declare victory on inflation
- The course will be a steady one
The bolded line is something that every trader should put on his wall. There were risks around the August rout but when nothing 'broke' it was the green light to buy risk assets.
