Jay Powell is choosing a politically problematic course. By not having a definitive response to President Trump or the warning signs of global recession, he's undercutting every justification for an activist central bank. There is a qualitative difference between a deliberate policy of inaction (which arguably is defensible) and simply failing to act. Powell is presenting an image of an impotent and toothless Federal Reserve--which is the exact opposite of what the "trust the experts" crowd would have everyone believe. If you support the idea of an activist Fed, Powell is hugely disappointing. If you prefer a non-activist Fed (as I do), Powell is hugely dangerous--setting or allowing expectations to be set then failing to meet them. Neither scenario is beneficial to anyone, least of all American securities markets. https://www.oann.com/powell-u-s-in-favorable-place-fed-will-act-as-appropriate/ #news #economy #banking #politics #finance
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