Jerome Powell faces a difficulty before July's Fed meeting – Axios

Running the news: Powell once again searched for liquidity day on Tuesday and noted during a speech in the Foreign Affairs Council that "the global risk picture has changed … since May 1, significantly" but also said " is important not to overreact in the short term to things that are temporary or transient. "

Be smart: The Fed chair responded to embracing what Axios & Felix Salmon calls "constructive ambiguity" against the drawing made by predecessors Ben Bernanke and Janet Yellen. They dictated Fed's plans on the market with forward-looking and long-term political statements. Powell has a reversed course.

• "Rate guidance as a tool is about the Fed ahead of markets and lead them to where [the Fed] will go," Vincent Reinhart, a 24-year-old Fed veteran who now serves as Chief Economist at Standish Mellon Asset Management, says Axios.
• "December [FOMC meeting] showed that if you lead, you are the target of criticism, both from the markets and the president, so that they switched to much more data addiction … and moved from the front of the package to the back."

Bottom line: Powell does not fight Trump's continuing criticism, such as Axios & # 39; Courtenay Brown writes, but also the negative impact of his trade war on the US economy, while securing a surprise agreement.

• An "insurance downturn" in July could not only show a political error but further destroy Powell's credibility and Fed's.
• But not cut rates will put He in the crosshairs of the president and the market, as h

Going deeper: Powell's Fed sentences do not dumb things