A Little Federal Reserve FOMC Fun for Tomorrow
Tomorrow is the big Federal Reserve Federal Open Market Committee (FOMC). Will Chairman Powell go for the expected 75 basis point raise or the full 100? Nick Timiraos at the Wall Street Journal, a reporter many feel has the inside line to the Chairman had a piece out yesterday that seemed to imply that Powell would pay homage to fabled inflation destroyer, former Fed Chairman Paul Volcker and blast us with the full 100.
Personally, I don’t think Powell goes this far but it is not out of the question. What I found really funny is the picture they ran with the article, a pensive Powell with Ben Bernanke (uber-dove) on one shoulder and Paul Volcker (uber-hawk) on the other, Bernanke urging patience while Volcker commanding the full monty.
Maybe it is just my immature mind but doesn’t it remind you a bit of the infamous bedroom scene from Animal House? It would be perfect if our friends at the WSJ traded shoulders with Bernanke and Volcker but it still works.
Let’s see what happens 2pm tomorrow. I’ll put out a less childish write up on what I take away from the statement and the press conference afterwards.