MNI BRIEF: Fed Risks Soft Landing If It Doesn’t Cut - Goolsbee

MNI BRIEF: EU Parliament Backs Von Der Leyen For 2nd Term

MNI: ECB LEAVES KEY DEPOSIT RATE UNCHANGED AT 3.75%

MNI China Daily Summary: Thursday, July 18

MNI BRIEF: China To Upgrade Rural Land Reform: 3rd Plenum

MNI BRIEF: China's Third Plenum Eye's Deeper Financial Reform

MNI: FED BALANCE SHEET TOTAL ASSETS -$16B TO $7.208T IN WEEK

MNI: US TSY TICS NET FLOWS IN MAY +$15.8B

US Treasury Auction Calendar

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Powell Asked His Opinion On 2020's Forward Guidance

FED
  • Q: What would you say about 2020's forward guidance in hindsight?
  • A: We said we wouldn't lift off until we had achieved our dual mandate goals. The first look at the new framework we'd rolled out, people were saying "it's not credible, you'll never get inflation to 2%." Some of our critics who said inflation was too high were the same ones saying you'll never get to 2%, but that's what happened. We thought we needed to make a strong statement with that. It wasn't part of the framework. The December '20 guidance wasn't part of our overall framework, it was just guidance we put in place.
  • I'd say two things. One, I don't think that that has materially changed the situation, but I have to admit, I don't think I'd do that again. Ultimately, the situation evolved in a highly-unexpected way for all of us. And maybe the learning is that we have a little more flexibility than that. Did it matter in the end? I really don't think it did. I'm not sure it would have mattered if we'd been raising rates earlier. Lots of central banks were raising rates three months earlier and it didn't matter.
Energy BulletsCommodities
Energy BulletsCommodities

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.