, Columnist
When Powell Makes Doves Cry With Disappointment
The Fed has been misunderstood before, but shouldn’t be this time. Investors need to stop imagining pivots that will only lose them money.
Slower but higher. Now, does everyone get that?
Photographer: Al Drago/BloombergThis article is for subscribers only.
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What the Fed giveth, the Fed taketh away an hour later (if it’s so minded). As expected, Wednesday’s Federal Open Market Committee meeting yielded a hike of 75 basis points in the fed funds rate, but added language to the accompanying statement that gave far more leeway to hike in smaller increments from now onward. The critical passage, with the changes underlined, was as follows: