So next time around when the bond market tighten too much, should he cut? By his logic he should cut, and that is the opposite of market run complement to Fed policy.
@BlacklionCTA Otherwise why bother having a Fed. Inflation is uncertain, rate is uncertain, real rate is double uncertain. Why not abolish fed and let the market decide everything as a good libertarian would agree.
@BlacklionCTA Public policy maker should always inject certainty to the public. If you want to tighten, you say you want to tighten and follow through. You donβt be ambiguous and let the uncertainty do the job for you.
@PegasusFund@darioperkins@U5sigma2 And what data is he depending on? I would trust national account/BLS data over any novelty data the new task force finds. In statistics, consistency in data collection methodology is important.
@PegasusFund@darioperkins@U5sigma2 There was never lack of attention to data. Plus by revealing Fedβs reaction function, it helps the market to better price the long end, since market at long end can decide whether reaction is effective. This runs complement to Fedβs rate policy, I donβt see much cons to it.
@darioperkins It's a view he has been holding for over 20 years, I donβt expect it to change. Whatβs really irking me is he was never able articulate why no forward guidance is good.
@bubbleboi 3d packaging isn't innovative enough? Plus, why wouldnβt you long commodity exploitation. Itβs the entire point of financeβlong scarcity to provide ample capital.
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