I think the general consensus in the markets is that Fed Chairman Powell's testimony before Congress was dovish. But from the last post, you can tell I take a different view. And I think this is important for the US economy and global markets.
The regime shift at the Fed
Powell does a good job building consensus among colleagues. But right from the outset, I saw his chairmanship as a regime shift from his predecessor Janet Yellen.
The tell was Powell's last commentary before Congress six months ago. And I remember University of Oregon professor Tim Duy noticing similar things about the likelihood of higher rates at an accelerated pace. It was when Fed governor Lael Brainard, a former dove, weighed in that you knew that Powell had secured wide acceptance at the Fed for his regime shift.
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.