Problem: Powell
Crazy Idea: Fire him
Short reaction post today!
Powell just threw the entire market under the bus with that performance. And it was a performance - not a serious discussion. The guy’s supposed to be the adult in the room and instead he’s out there sounding like a deer in headlights. Where do we find these guys!
Powell’s Greatest Hits Today 🎭
“Data-dependent” — Translation: “I have no f’ing clue what I’m doing or I am politically motivated.”
“Monitoring inflation closely” — While it’s already re-accelerating past 3.2% Isn’t this Mr Transitory?
“Patient approach” — Patient? The house is on fire, Jerome.
Dodged every question about fiscal dominance — Because he knows they’re trapped and he’s got a political agenda.
The man basically confirmed what every macro guy I follow has been screaming: The Fed is paralyzed. Can’t cut into 3.2% inflation. Can’t hike into -0.8% GDP growth. Policy effectiveness = ZERO. He waited too long to act and now he’s screwing everyone.
Remember he’s the guy that printed all the money.
— Matthew