“Fair enough. However amid this frenzy of number-crunching, investors should also take note of some intriguing research floating around the edge of the Jackson Hole meeting about the importance of storytelling in monetary policy.”
USAGOLD note: No matter how much lipstick you put on the pig, it is still a pig – no matter how compelling the narrative. Right now, Wall Street is buying the narrative, a topic Tett overlooks in this timely article. Ultimately, she concludes, the Fed should continue with its promise to keep raising rates until inflation is under wraps. Narrative aside, as we have mentioned before, it all comes down to a matter of degree. Will the pace of the rate increases be enough to subdue inflation? During the 1970s, central bank officials unwaveringly presented themselves as inflation fighters, as prices blew through one milestone after another. Ultimately, the Fed will be judged by what it does, not what it says.