The latest thought piece from Francis Scotland, Director of Macro Research at Brandywine Global.
Francis highlights the recent change in rhetoric from the Fed and what this may mean for future policy decisions in the US and also highlights the change in direction of Chinese policy after the slowdown in 2018.
US monetary policy announcements can be cryptic at times. Not so the last Federal Open Market Committee meeting. The January 30 press conference was the final act to some dramatic theatre that does play out from time to time at the Federal Reserve (Fed). The earlier acts in this drama unfolded: new guy becomes Fed Chair; asserts his own style; becomes emboldened by his own view; makes a mistake in judgment; attempts to stick to his guns despite spreading criticism; eventually he is taken to the wood shed by the market. In the final act, he returns humbled and sets things right again …