Independence speech by Jerome Powell - January 10, 2023
bitcoinmacroblock.substack.com
1×
0:00
-1:25
Hey guys
Once more, Jerome Powell told us the importance of the central bank's independence.
Think of it as giving the Fed a "long leash" to make important monetary policy decisions, free from short-term political pressures. Powell emphasizes that this independence is crucial to achieving the Fed's mandate of maximum employment and price stability.
He also stresses the importance of transparency, allowing the public and their representatives to "look over the Fed's shoulder" and understand the reasoning behind its decisions. Just like how a chef needs to be transparent with their ingredients, the Fed needs to be transparent about its "recipe" for monetary policy.
Powell also reminds us to not let the Fed "chase after every shiny object", or try to tackle societal issues beyond its statutory goals and mandate.
In summary, Powell emphasizes the importance of independence, transparency, and focus in the Fed's actions.
This statement from Powell is quite general and doesn't touch on market specifics such as cutting or halting rates. It mostly focuses on the importance of the Fed's independence. He's getting pressure from politics is what it means and sh1t only gets worse for him from here. We will see how firm he stands for all 2 years he plans to keep rates.
Also, I believe that it is important to wait for the release of the Consumer Price Index (CPI) numbers to gain a better understanding of future market trends.
Keep in touch
If you're interested in staying up-to-date with economical & crypto news, I would really appreciate it if you could consider subscribing.
Independence speech by Jerome Powell - January 10, 2023
Independence speech by Jerome Powell - January 10, 2023
Independence speech by Jerome Powell - January 10, 2023
Hey guys
Once more, Jerome Powell told us the importance of the central bank's independence.
Think of it as giving the Fed a "long leash" to make important monetary policy decisions, free from short-term political pressures. Powell emphasizes that this independence is crucial to achieving the Fed's mandate of maximum employment and price stability.
He also stresses the importance of transparency, allowing the public and their representatives to "look over the Fed's shoulder" and understand the reasoning behind its decisions. Just like how a chef needs to be transparent with their ingredients, the Fed needs to be transparent about its "recipe" for monetary policy.
Powell also reminds us to not let the Fed "chase after every shiny object", or try to tackle societal issues beyond its statutory goals and mandate.
In summary, Powell emphasizes the importance of independence, transparency, and focus in the Fed's actions.
This statement from Powell is quite general and doesn't touch on market specifics such as cutting or halting rates. It mostly focuses on the importance of the Fed's independence. He's getting pressure from politics is what it means and sh1t only gets worse for him from here. We will see how firm he stands for all 2 years he plans to keep rates.
Also, I believe that it is important to wait for the release of the Consumer Price Index (CPI) numbers to gain a better understanding of future market trends.
Keep in touch
If you're interested in staying up-to-date with economical & crypto news, I would really appreciate it if you could consider subscribing.
Share
Also, the video version if you like some visuals.