Posted 10/26/2023, 10:00:31 AM
Fed's Data-Driven Policy Approach Causing Market Volatility Due to Uncertainty
- Fed's uncertainty around data-driven policy approach is creating market volatility, according to strategist
- Fed going data-dependent has increased uncertainty and volatility around how economy will evolve
- Longer-term yields becoming unhinged from mid-year levels, driving volatility
- Impossible for Fed to achieve strong growth, low unemployment, and 2% inflation in 4 years
- Evidence shows policy not yet restrictive, but Fed still pausing hikes, creating uncertainty around what's driving policy