Powell: Fed ‘will be patient’ with monetary policy as economy performs


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:

Image result for spanking

It’s not nice to raise interest rates when inflation is low.