Comments on: What Powell Missed In His Jackson Hole Speech Explaining Inflation’s Drivers

By: The Federal Reserve’s “Hawkishness” Finally Gets the Stock Market’s Attention | Inflation Watch

Fri, 20 Dec 2024 06:30:28 +0000

[…] used car prices.” As usual, I turned a skeptical ear toward this narrative because Powell, as he consistently does, absolved the Fed of any responsibility in aiding and abetting inflation’s stickiness by […]

By: Dr. Duru

Dr. Duru — Tue, 29 Aug 2023 07:21:09 +0000

In reply to Gary H. I might be more sympathetic if the Fed were not so confident at the time that the pandemic had NOT disrupted standard and conventional economic models.

By: Gary H

Gary H — Mon, 28 Aug 2023 12:28:36 +0000

I’m a little more sympathetic to the Fed’s initial reticence to start raising rates; the pandemic supply-demand distortions broke the Fed’s (and the other central banks’) econometric measuring tools, leaving them unwilling to risk making a horrible mistake if their market support was still crucial to the nascent recovery.

But I agree 100% on every subsequent point. The Fed’s refusal to recognize and “own” the effects of their initial delay is degrading their credibility, which is their most powerful asset.