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Fed Jumps Off Predictable Path and Into a Policy Wilderness

  • Powell reaches inflection point as rate policy nears neutral
  • Risks gather on the horizon, and President Trump isn’t happy
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A Fed Pause Would Signal Global QT, El-Erian Says
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Federal Reserve officials have stepped off a predictable path of interest-rate increases and are signaling to investors a hard truth about relying on increasingly contradictory economic data: There are no easy answers anymore.

It’s going to be choppy. It’s going to bring more surprises. And it may get rough on those trying to track the the central bank’s strategy. A lot of reputable Wall Street forecasters will need to revise their predictions because even the Fed is less certain about what it is going to do.