Article Image
News Link • Federal Reserve

Powell: "Strong, Healthy"; Market: AYFKM?!

• by Jeffrey Snider

The Committee judges that some further gradual increases in the target range for the federal funds rate will be consistent with sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee's symmetric 2 percent objective over the medium term.

The statement used the word "strong" three times in the paragraph before, too. You can see just how much the unemployment rate grabs these empty suits in spite of so much else.

Markets reacted uniformly with AYFKM. What else can they say, and trade, at this point?

Powell has trapped himself in Yellen's prior position.

If he's not careful, he'll smile his way past that all the way to Bernanke's "contained."

Join us on our Social Networks:


Share this page with your friends on your favorite social network: