Video viewers have heard me repeatedly pronounce that, in my humble view, despite the tough talk, Jerome Powell and company do not aim to purposely wreck the economy and the financial markets (as unavoidable as that may be) in order to halt the wrecking ball that is present day inflation.
Bloomberg’s “Macro Man” Cameron Crise echoes that sentiment:
“If the object of policy is to tighten financial conditions, why bother with the last-minute press leaks to ensure that markets are not surprised and shocked by the outcome of a policy meeting? Wouldn’t a surprising rate move have a greater effect in shifting market risk premia, thus implying that the central bank could achieve its goals sooner?”