Either Way, You’re Toast
There are multiple ways to skin a cat, and at least two ways for the world’s most powerful central bank to paint itself into a corner when it comes to normalizing policy.
The Federal Reserve’s April meeting went according to script: Rates unchanged, asset purchases steady, and while the economy and labor market have “strengthened,” policy makers won’t be pulling back support any time soon. Chairman Jerome Powell had plenty of opportunities to make that clear in the presser, where right off the bat he was asked if it’s time to start talking about tapering. The answer: No.