Powell’s comments unleash unsettling volatility

Economic Times/Mohamed A El-Erian/3-8-2023

“It really shouldn’t be this way, and it doesn’t need to be. Yet once again remarks by Federal Reserve Chair Jerome Powell fueled considerable volatility in markets that could risk both economic well-being and financial stability. It’s a phenomenon that not only highlights repeated policy slippages but also the lack of important structural and strategic underpinnings at the Fed.”

USAGOLD note: El-Erian has become a lead critic of the Powell Federal Reserve. In his view, the Fed chairman is playing with fire. In this essay he details where the Fed is going wrong.