Ahead of this week's FOMC (here are just two previews earlier from the torrent):
- Barclays FOMC preview - 50bp hike already signaled - eyeing Powell's press conference
- Preview - BoA are focused on Powell's press conference following the FOMC statement
A writer at Brookings does not focus on this meeting (statement is due at 1800 GMT on Wednesday 4 May, Powell follows at 1830GMT) but instead gives some reasons to be cheerful on a better performance from the Fed to come. In brief:
- The Federal Reserve has come in for considerable criticism, much of it deserved, for being slow to understand and react to high and persistent inflation pressures.
- A soft landing for the economy now—bringing inflation down to the neighborhood of 2 percent without a recession—will, in the words of Janet Yellen, require skill and good luck.
And:
- I can assure you from personal experience that, from the perspective of being open to new ideas and diversity of thought among policymakers and staff, this is not your grandfather’s Fed.
- The evidence of the last six months indicates that, in contrast to the 1970s, today we have a Fed that will carefully weigh all the factors, conduct good dispassionate analysis of developments, and adapt to changing circumstances—even if, on occasion, it takes a little longer than some of us might have wished.
I guess the 'take a little longer than some of us might have wished' is the problem. Its been far too slow to adjust. Then again, not as slow as the RBA.
