New Fed Chair confuses the market with imprecise language
Where this stems from: After the Fed removed the term “accommodative” from its policy statement, some investors deduced that the central bank was nearly finished raising interest rates. Jerome Powell said in his press conference yesterday that the change in wording is not a policy signal at all.
In his words: “We don’t want to suggest either that we have this precise understanding of where accommodative stops or suggest that’s a really important point in our thinking. What we’re going to be doing … is carefully monitoring incoming data.”