Jay Powell’s Plan To Kill The “Fed Put” | Danielle DiMartino Booth
Forward Guidance
00:00
The Fed Takes Down Their Unemployment Rate Projection From 4.4% to 4.1%
Böhler: The dot plot is so high because everybody's on board with maintaining higher interest rates for longer. If you're Jim Böhler and you've all of a sudden woken up tomorrow, got a concussion, huge dove, and you wanted to signal that the FOMC, I think we should pull the plug on quantitative tightening, you would take your dot plot down. You would say the Fed needs to be in an easing mode in the near term. So they're showing not telling. They're saying you don't believe higher for longer; Guess what? We just showed you higher for longer.
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