Many will be listening for Fed forward guidance for Sept and also rest of 2022. But how accurate will this forward guidance be? The previous June guidance is 50bps but we all know it was hike up to 75bps instead during the last min after May CPI came out much worse just 1 week before June FOMC. As such, Fed did not follow through with their guidance and went ahead with a bigger hike. Maybe Powell should follow the example set by Lagarde of ECB. Last week, Lagarde ditched their guidance and went ahead with a 50bps hike. She then said ECB will not offer forward guidance of any kind and will make monetary policy decisions on a data-dependent basis, month by month. So will Fed follows ECB and decide not to offer guidance too? Fed guidance is not shown to be any accurate anyway.
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