The Powell's Googly!

“No major institution in the US has so poor a record as the Federal Reserve yet so high a public reputation”- Milton Friedman.

The preposterous delusion in the game of cricket is the “Googly”; a type of delivery bowled by the leg-break bowler to entrap the batsmen. Whereas an ordinary ball from the leg-break bowler spins the ball from right to left (when perceived from the bowler’s perspective), in the googly, the ball, after pitching, deviates from its conventional course and spins from left to right, thus bewildering the batsman.

Source: Giphy.com, Batsman caught by surprise after a “Googly”

Lately, the Chair of the Federal Reserve, Mr Jerome Powell, has constantly been delivering Googlies to the markets with his actions and words. Beginning with the last year’s narrative of “transitory” inflation (when the CPI was shooting far above the long-term target of the FED )to the present narrative of bringing down inflation without a hard landing, the Fed has lost its credibility along with …