Global Daily: A head in the sand is not a more granular view

The Fed’s Powell used his semi-annual testimony to defend his independence and vow to focus on data, like US CPI today, not politics. He therefore fails to understand this is not how economic statecraft works vis-à-vis central banking. The Fed Chair added, “It’s unwise to speculate on tariff policy at this time.” Does he mean the looming 25% tariffs on aluminium and steel (and soon pharma and semiconductors)? Or the extra 10% on China in place? Or universal US reciprocal tariffs? Even ignoring this all(!), Powell stressed he was in no hurry to cut rates. For both Powell and team “Rate cuts!” this is not ‘not playing politics’ but putting one’s head in the sand and thinking it gives a granular view of things.