After his 2nd blunder in 3 months, Fed Chair Powell was saved today by NY Fed Presdient Williams.
President Williams was interviewed on CNBC today around 10:10 am. Up until that time the market was up, but trending lower. As he spoke, the market rallied hard to the upside. As I type this, the Dow is up 370 points. I don’t know if it will hold or go up or go down for the rest of the day. But his comments show the Fed isn’t as clueless as the Fed Chair made them seem.
What did he say that was so magical? He simply said that the Fed will change any and all of its plans depending on market data and inputs from market participants. They will raise or lower rates, if necessary. And they would change their stance on balance sheet normalization when necessary.
Thank you, President Williams!!!