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Jay Powell’s Plan To Kill The “Fed Put” | Danielle DiMartino Booth

Forward Guidance

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Powell's Intent to Continue Delivering Quantitative Tightening in a Synthetic Form

Last time Powell didn't deliver, he pivoted. What's different this time? Well, again, I think this time is his intent to continue delivering tightening in a synthetic form. You cannot justify pulling the plug on quantitative tightening if you suggest that rate cuts are right around the corner. So it's the maintenance of high rates that makes all the difference in the world from the perspective of the borrower.

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