Ben Casselman
@bencasselman
Econ reporter @nytimes. Formerly @fivethirtyeight @WSJ. Adjunct @newmarkjschool. He/him ben.casselman@nytimes.com Signal: bencasselman.96 Photo: Earl Wilson/NY
3K Following 69.9K Followers
Warsh isn't the first Fed chair to learn the hard way how closely markets parse his words. The question now is how he responds.
Smart piece from @colbyLsmith:
SCOOP: Kevin Warsh is considering reducing the number of Federal Reserve policy meetings. The Federal Open Market Committee has met eight times a year for decades.
With @colbyLsmith
Show more
The A.I. boom shows up clearly in the data. Investment in data centers and information processing equipment are soaring. But the impact on GDP is limited because so much of that equipment is being imported.
Show more
The A.I. boom shows up clearly in the data. Investment in data centers and information processing equipment are soaring. But the impact on GDP is limited because so much of that equipment is being imported.
Show more
NEW: The Fed is in the business of "performance," Warsh said after holding rates steady. It did not take long for markets to signal they were unhappy with his.
Warsh's approach involved tough talk on inflation but stopped short of embracing the prospects of higher rates, which many believe are necessary to address it. That sparked a backlash, one that could prove difficult to resolve without a shift in how Warsh communicates
Show more
This Warsh contradiction has been nagging at me. At Sintra at the start of the month, he took comfort at the recent decline in bond yields, implying bond markets understood low inflation was on the way. Today, he took comfort at *higher* bond yields, saying they will deliver low inflation. How can this be: that lower bond yields are reasons to feel good about inflation, but higher bond yields are not a reason to feel bad about it? Without him articulating a monetary and economic framework, these statements make it feel like he's winging it.
Show more
10-year not as dramatic as 30-year, but also rising, now close to the high from last week. Sorry to anyone hoping for lower mortgage rates anytime soon.
30-year yield spiking after the Fed announcement.
