Submitted by Theorysquatch t3_11z2nag in wallstreetbets
Aarschotdachaubucha t1_jdca2x3 wrote
Reply to comment by Due-Employee9272 in 4 Trillion dollar corrective response by Theorysquatch
Except that's not what Powell said. Powell is leaving open the door to the possibility that further chaos may impede their ability to raise the long term rate, forcing them to delay but not pause raising rates while they resolve the next crisis. He's essentially telegraphing a subject they just finished discussing in FOMC.
If the FOMC were still focused on figuring out the scale of the damage from additional, post-SVB/Signature bank failures (i.e. if FRC or others had fallen), they might not have worried about a rate hike at this moment. As Powell said, additional bank failures in the short term were taking more money out than their interest rate hike could do. That's why they didn't do 50bps in this meeting.
[deleted] t1_jdg48p8 wrote
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