The Powell Fed Credibility

Aug. 30, 2022 3:37 PM ETSPY, IVV, VOO, VTI, DIA, IWM, QQQ21 Comments
John M. Mason profile picture
John M. Mason
16.11K Followers

Summary

  • The credibility of the current Federal Reserve leadership has now been questioned by Mohamed El-Erian publicly.
  • If the issue of credibility reaches a publication like the Financial Times and is presented by a prominent analyst, one should be concerned.
  • Jerome Powell, Chairman of the Federal Reserve System, tried to address his audience last Friday at the Jackson Hole Conference and apparently has come up short.
  • If the Federal Reserve continues to lag in policy response and continues to lag in credibility, investors must be cautious in building their investment strategy.

White questions mark illustration on yellow background and copy space for FAQ and question and answer time by 3d rendering.

Dilok Klaisataporn

Mohamed El-Erian writes in the Tuesday, Financial Times,

"This may well be the least credible Fed in the markets' estimation, since the 1970s."

Mr. El-Erian does not mention that the current Federal Reserve is led by Chairman Jerome

This article was written by

John M. Mason profile picture
16.11K Followers
John M. Mason writes on current monetary and financial events. He is the founder and CEO of New Finance, LLC. Dr. Mason has been President and CEO of two publicly traded financial institutions and the executive vice president and CFO of a third. He has also served as a special assistant to the secretary of the Department of Housing and Urban Development in Washington, D. C. and as a senior economist within the Federal Reserve System. He formerly was on the faculty of the Finance Department, Wharton School, the University of Pennsylvania and was a professor at Penn State University and taught in both the Management Division and the Engineering Division. Dr. Mason has served on the boards of venture capital funds and other private equity funds. He has worked with young entrepreneurs, especially within the urban environment, starting or running companies primarily connected with Information Technology.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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