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Authored by Mike Shedlock via MishTalk.com,

Stanley Druckenmiller says the Fed should get rid of forward guidance and just do their job.

I totally endorse a view by Stan Druckenmiller, the Fed Should Stop Forward Guidance.

Partial Video Transcript

Squawk Box:

Druckenmiller:

Squawk Box:

Druckenmiller:

The Fed is Uncertain About Uncertainty, So Why the Forward Guidance?

On September 22, 2023, shortly before the Fed’s pivot, I asked The Fed is Uncertain About Uncertainty, So Why the Forward Guidance?

Here is the image I posted then.

Image from the Fed FOMC projection materials.

Need to Make Up For Lack of Inflation

I’ve been discussing this for going on two decades.

Fed Uncertainty Principle

Flashback April 3, 2008 before the collapse of Lehman and Bear Stearns, to one of my all time favorite posts: Fed Uncertainty Principle

Fed Uncertainty Principle Recap

And so here we are. Still discussing the same things, with the Fed making the same mistakes.

The Fed’s Big Problem

On average, the economy looks OK. But averages are misleading. Several large groups of people are struggling. They all have one thing in common.

Case-Shiller home price index, CPI rent index, and the index of hourly earnings for production and nonsupervisory workers.

The Fed is now trapped in a box of its own making. Everyone who is priced out of a home is very unhappy with soaring rent, soaring home prices.

If the Fed cuts rates prematurely, what does that do to housing prices?

For discussion, please see The Fed’s Big Problem, There Are Two Economies But Only One Interest Rate

Meanwhile, Powell sounds like a wizard reading chicken bones because that’s really all he is.