Because of blind adherence to the unemployment rate, Powell has set himself up to be the fall guy. People largely believe that rate cuts aren’t necessary, so if they become necessary it will be considered a case of monetary policy spooking the system. Things weren’t bad until the Fed made them bad by making everyone afraid.
And if share prices fall… Oh, the irony. The Fed will be blamed for hyping downside risks no one currently believes because the public bought the hype for upside potential that didn’t really exist. Monetary policy and central bankers have left the world upside down.
