El-Erian on Powell induced volatility- could risk economic well-being, financial stability

Mohamed A. El-Erian writing in a Bloomberg piece, also picked up by the Washington Post.

Both are gated, unfortunately.

In brief:

• once again remarks by Federal Reserve Federal Reserve The Federal Reserve System, more commonly known as the Fed, represents the central banking system of the United States. Like other central banks globally, the Fed is responsible for monetary policy, in this case in the US.The Fed is one of the most watched and followed entities for forex traders, given its material impact on the US dollar. Founded initially in 1913, the Fed was created to perform a wide range of functions. This includes stabilizing and maintaining flexible monetary policy in the The Federal Reserve System, more commonly known as the Fed, represents the central banking system of the United States. Like other central banks globally, the Fed is responsible for monetary policy, in this case in the US.The Fed is one of the most watched and followed entities for forex traders, given its material impact on the US dollar. Founded initially in 1913, the Fed was created to perform a wide range of functions. This includes stabilizing and maintaining flexible monetary policy in the Read this Term Chair Jerome Powell fueled considerable volatility Volatility In terms of trading, volatility refers to the amount of change in the rate of an index or asset, such as forex, commodities, stocks, over a given time period. Trading volatility can be a means of describing an instrument’s fluctuation. For example, a highly volatile stock equates to large fluctuations in price, whereas a low volatile stock equates to tepid fluctuations in price. Overall, volatility is an important statistical indicator used by many parties, including financial traders, analysts, In terms of trading, volatility refers to the amount of change in the rate of an index or asset, such as forex, commodities, stocks, over a given time period. Trading volatility can be a means of describing an instrument’s fluctuation. For example, a highly volatile stock equates to large fluctuations in price, whereas a low volatile stock equates to tepid fluctuations in price. Overall, volatility is an important statistical indicator used by many parties, including financial traders, analysts, Read this Term in markets that could risk both economic well-being and financial stability
• a phenomenon that not only highlights repeated policy slippages but also the lack of important structural and strategic underpinnings at the Fed
• Several times in the last few years, comments at the press conference that traditionally follows the conclusion of the two-day FOMC meetings have caused significantly more volatility than the prior publication of the central bank’s policy decision and Powell’s written remarks. On Tuesday, the initial market volatility caused by the release of Powell’s opening statement before the beginning of his semiannual congressional testimony was significantly amplified by his subsequent answers to senators’ questions.

Earlier on Powell:

• Forexlive Americas FX news wrap 7 Mar: Powell leans toward an acceleration toward 50 bps
• BlackRock says Federal Reserve could hike rates to 6%, hold for an extended time there
• US yield curve inversion, the recession indicator, is its deepest in 40+ years
• Citadel's Griffin says the mixed messaging from the Federal Reserve is counterproductive

Mohamed El-Erian