Skip to content
Subscriber Only
John Authers

Market Jitters Show How Much Fed Medicine Matters

For investors, yield curve control is a big deal, so a hint that it isn’t going to happen didn’t go down well.

Just a little yield curve control to calm your nerves.

Just a little yield curve control to calm your nerves.

Photographer: Robert Cianflone/Getty Images

To get John Authers' newsletter delivered directly to your inbox, sign up here.

The world hasn’t changed that much. What the Federal Reserve says still matters, a lot. For evidence, look at the market reaction on a quiet Wednesday in August when the minutes to the latest Federal Open Market Committee meeting were published. We had already heard the chairman’s gloss on the discussion that the committee had, and there are ideal moments to unveil a new policy direction straight ahead, in next week’s annual gathering of central bankers in Jackson Hole, Wyoming (which, unfortunately for the bankers, will be virtual this year, denying them the chance for some fresh air in the great outdoors), and in next month’s FOMC meeting.