Is The Fed Losing Control?

Only a few weeks ago the Fed issued firm indications that interest rates would tick higher over the next 18 months or so. Now, confirmation that interest rates are currently “neutral” would suggest that interest rate rises in the short term have been put on hold. Is the Fed losing control?

 

I think some people are being a little unfair. The Fed is just reacting to the latest economic indicators and concerns regarding worldwide trade and tariffs. Surely this is what you would expect from the Fed? What would be the point of announcing a new policy months ago only to be blinded to future changes and not react?

 

They know what they are doing. So many times they make statements to turn the market into their favor. They control the market and it is their job to do so anyway.

 

I agree with the comment above - it is the job of the Fed to react to whatever is in front of them. As a consequence things will change from time to time. However, they do need to control DT!