22 April 2024

This, from Bloomberg, conveys the (correct) notion that the #FederalReserve’s interest rate signaling is a hostage of the fluctuating winds caused by high-frequency data releases...| @elerianm

 


This, from Bloomberg, conveys the (correct) notion that the #FederalReserve’s interest rate signaling is a hostage of the fluctuating winds caused by high-frequency data releases that capture both noise and signals in changing importance. It speaks to something I have been stressing: After the embarrassing 2021 policy mistake, the #Fed became excessively data-dependent, adding to volatility rather than providing a strategic anchor.

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