Tim Mullaney: How the Fed got it right by showing patience

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Federal Reserve Board Chair Jerome Powell is the very model of a patient central banker.

The Federal Reserve got a lot of attention today for putting out a statement changing its previous promise that it would be “patient’’ before cutting interest rates — even as it declined to cut rates now. Whoopee!, social media cried, in a reaction I may exaggerate slightly. They’re gonna cut and cut and cut!

And then Fed Chair Jerome Powell gave a strong press conference, where he demonstrated what patience really means. And suggested, contrary to a lot of commentary that seized on the statement’s signs of dovishness, that maybe rate cuts aren’t as automatic as the market thinks.

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