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 Chair Jerome Powell fueled considerable volatility 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