Now open your ears and listen carefully. May 4th of last year, Fed Chairman Jay Powell said at a press conference, “A 75-basis point increase is not something the Commission is actively considering.” Five weeks later, the Fed has raised interest rates by 75 basis points. Then he ran another 75 basis points, another 75 basis points, another 75 basis points. 4 in a row.
Today, when Powell frankly explains how far interest rates will rise and how long they will stay there, remember that he doesn’t even know what he’ll do next month… Alone until the end of the year. The Federal Reserve’s forecast is worthless than anyone else’s. That’s why they say they are “data dependent”. Invest like an adult, not a child who believes in clairvoyance.
