The Federal Reserve's primary powerful tool today is forward guidance and jawboning, not rate adjustments, as evidenced by the strong economy persisting despite fed funds rate above 5% due to loose conditions on the long end (10-year and beyond)

causalpending

Speaker

Felix

Evidence Quote

“their most powerful tool is Ford guidance”

Source

What Stops The Runaway U.S Fiscal Trainwreck? | Weekly Roundup— Forward Guidance
Created: 8/12/2026, 6:47:08 PM

My Notes

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