The Julia La Roche Show · Thursday, July 30, 2026
Powell has rejected continuous forward guidance, stating the Fed is not in the forecasting business and emphasizing data dependence. DiMartino Booth interprets his remarks about not focusing on "shocks" as a potential hint towards 'team transitory,' suggesting a shift in how the Fed views current inflation drivers.
“Just the most inefficacious Fed chair, you know, ever. He's, you know, abandoning forward guidance, um, is reckless.”
“And he also said, you know, that there were only two things wrong with data dependent, that there was data and dependence. So, um, meaning we're looking at the wrong data.”
“And he let himself slip because he said, you know, we don't necessarily need to be focused on the shocks just because the streetlight is shining on them.”
“And that led market participants to say, well, it sounds like he's kind of on team transitory to bring up an old phrase.”