In his first press conference, Jerome Powell baffled both the experts and the markets. After reading the hawkish introductory statement, he defused all fears for a harsh and swift monetary tightening.
Jerome Powell position
We need to be aware of the existence of regulations over and above the well-known Taylor Law, starting with this regulation adjusted to establishing a downward limit on rates of 0%, which is very important in the US Fed’s case.
If Jerome Powell is “sold” on the idea that he has to restrain an economy that is “too vibrant”, the outcome will be “disaster”.