At the post-meeting press conference, Powell demonstrated the central bank’s understanding of the optics around its balance sheet expansion.
Here's Jerome Powell, keen on keeping Fed independence ahead of the Fed meeting this week, hanging out with his core constituency at the Jeff Bezos shindig. Also attending: Ivanka Trump, Jared Kushner, Bill Gates among others. pic.twitter.com/Z4T84zBd8G
— Sven Henrich (@NorthmanTrader) January 26, 2020
Bottomline: Powell dodged the most important question:
Are the Fed's policies causing risk asset prices to rise above where they otherwise would be.
He knows they are, but can't admit it.
And that makes the Fed an inherent dishonest organization.
— Sven Henrich (@NorthmanTrader) January 29, 2020