Fed Week: Powell Abandons Forward Guidance: With Jim Bianco and Joseph Wang

Published on
July 28th, 2022
Duration
76 minutes


Fed Week: Powell Abandons Forward Guidance: With Jim Bianco and Joseph Wang

Real Vision Essential ·
Featuring Jim Bianco, Michael Coolbaugh, and Joseph Wang

Published on: July 28th, 2022 • Duration: 76 minutes

As Joseph “The Fed Guy” Wang suggested it might, the pattern of stocks rallying the day of a Federal Open Market Committee rate-hike announcement and selling off the day after held this week too, at least until mid-morning on Thursday. In a post-FOMC-meeting conversation with Jim Bianco, the founder and president of Bianco Research, Wang, a former trader on the Fed’s open market desk, also notes that the Fed’s inflation goals entails unemployment rising “a bit” as well as below-potential GDP growth “for a couple years.” Still, as Bianco observes, investors are anticipating a Fed pivot. Recent price action could be about hedge-covering, but the sense is the central bank will be easing monetary policy by early 2023. Wang sees it differently: “This pivot view is probably going to be mistaken.” Wang and Bianco engage in an invaluable debate about the course of Fed policy at a time of unique uncertainty. Recorded on July 27, 2022. Stay tuned at the end of the interview as Real Vision’s Michael Coolbaugh, a macro analyst, breaks down and highlights the most important takeaways from their conversation.