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I don't see how what you posted contradicts what I said. I guess it all depends on how you interpret what Powell says, but him saying the labour market is overh
by mamonster 4y ago
I don't see how what you posted contradicts what I said. I guess it all depends on how you interpret what Powell says, but him saying the labour market is overheated is a signal to the market that unless the labour market stops overheating the Fed pivot is not becoming more likely(which is all that market participants care about as of today with regards to the Fed meeting, i.e when is the pivot coming).
- JumpCrisscross 4y ago> him saying the labour market is overheated is a signal to the market that unless the labour market stops overheating the Fed pivot is not becoming more likely The labor market isn’t being targeted. We have had tight labor markets with low inflation before. The Fed doesn’t spike them for the sake of it. What’s targeted for reduction is inflation. Labor market tightness permits the Fed to respond to it, which is why it’s constantly talked about. If you are on a road trip and decide you can take a detour because you have ample gas, it wouldn’t be correct to say you took the detour to burn gas.