CNBC: There is no preset path” for raising rates or adjusting the balance sheet, Powell said during a roundtable with former Fed chairs Janet Yellen and Ben Bernanke.
- Powell said the US economy is in strong shape and believes the market is pricing in “downside risks” that aren’t visible yet.
- However, he said the Fed is “listening very carefully” to the market. more …
Opinion: Really? After Powell’s October 3 declaration that “interest rates were a long way from neutral”, causing a drop in $2,000,000,000,000 (trillion) in equity in October alone.
Since then, the markets have decided to teach the Fed a lesson:
It’s not nice to raise interest rates when inflation is low.