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Jacques Richier

@jacquesrichier

Paris-Nice allianz.fr Joined May 2011
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Jacques Richier @jacquesrichier
Et oui…
Mohamed A. El-Erian Verified account @elerianm Mar 6, 2024
Fed Chair Powell is facing some quite aggressive Congressional questioning on the impact of high rates on low-income households, housing, capital requirements, and more.
His response is, understandably, to repeatedly refer back to the #inflation mandate.
The situation would have been less uncomfortable for the #Fed had it not mischaracterized the inflation problem for so long in 2021, been so late in its policy response and, therefore, had to hike rates aggressively and to a higher level than would have been otherwise necessary.
#FederalReserve #economy #markets
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Jacques Richier @jacquesrichier
Ah oui… l’humilité …
Mohamed A. El-Erian Verified account @elerianm Dec 28, 2023
From the @FT article on "Central banks rethink forecasting after failures on #inflation":
"Christine @Lagarde, the @ECB’s president, told the Financial Times in a recent interview that the central bank needs to learn from its mistakes. “What we should have learned is that we cannot just rely only on textbook cases and pure models. We have to think with a broader horizon,” she said."
This is consistent with others' call for #CentralBanks, particularly the #FederalReserve, to be more humble and do more to enhance cognitive diversity.
#economy #markets #econtwitter
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