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00:00How should we be thinking about this. Like it is you know markets are reporters trying to really always get just that nugget piece of news. Yes. Well certainly there's a lot of that going on. But no I guess I would tend to put a more constructive spin on it for the markets. And market participants are always wondering what we're gonna do. They're always wondering what we're what we're thinking and when when market moves happen that's really a constructive thing. It's never gonna be exactly what what we're thinking. But nonetheless it's constructive that that the market in effect is doing your work for you if it correctly understands your reaction function. So that's a maybe a more constructive way. And is it correctly understanding what you're saying right now. I would say but by and large I think ever since last fall when we when we pivoted to to raise rates and get where we are now since then markets have been pretty well aligned. I wouldn't bless any particular day for example but pretty well aligned with where we're going. And and right now you know the market pricing is pretty close to where the summary of economic projections from what was it two weeks ago was so my colleagues and I wrote down numbers for the end of this year for our policy rate between three and three and a half percent. And markets are broadly right in that space somewhere. And then for for next year between three and a half and 4 percent. So broadly speaking I think it's working. And you know we were all everything we say in terms of forward guidance to your point is always going to be conditional on the things that happen between you know between now when you give a guidance and when the actual event happens. And sometimes markets can forget about the conditionality part. But is there a problem actually with forward guidance in this kind of environment because it gets priced in straight away. So it feels sometimes like you know markets lead central banks follow because of the forward guidance. It doesn't really feel that way at all from where I'm sitting. It feels quite the opposite. And no as I said I think this is I think people will look back on this period and say that we were able to have financial conditions tightened quite substantially. And we've only we've only had three meetings at which we raised rates. Nonetheless the forward rate curve is pricing in a rate path that looks a whole lot like the the summary of economic projections that my colleagues and I submitted in June. So that's a good thing. That's the market understanding and finding credible what we're what we're writing down. And of course it's all highly conditional but nonetheless I'd say that's a positive thing.

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Powell Says Markets 'Pretty Well-Aligned' With Fed

Federal Reserve Chair Jerome Powell says markets in the US have been pretty well-aligned with where the Fed is going, especially after its pivot in the fall to more explicitly fighting inflation. He speaks with Francine Lacqua at the ECB Forum on Central Banking in Sintra, Portugal. (Source: Bloomberg)

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