Wednesday, May 29, 2024

Fed confusion because reality is confusing



Minneapolis Fed President Neel Kashkari says it's all part of the Fed's policy-as-performance art initiative: "Yes, it is confusing, but the economy is confusing right now, and so the confusing communication reflects the confusing reality that we're all trying to sort through," 

from Barchart brief 

President Neel Kashkari does not rule-out a rate increase and suggest that we need more positive news on inflation before a rate cut. 

Nevertheless, the Kashkari seems confused or that is the forward guidance that is being provided to investors. Why is this so difficult? If there is no clear direction in the data, then there is no reason to change policy. This is easy to communicate. 

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