Time for a new economics metaphor

Powell firmly and figuratively warned perplexed reporters, "Do not compel me to return to your location!"

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Is it possible to halt the practice of likening the economy to an automobile?

This cliche comparison has encouraged many overly assured remarks about "overheating", or the absence of it. It could also be the root of one of the more perplexing blends of declarations and predictions from the Federal Reserve in recent history.

All of the members who were eligible to cast their vote in the Fed's decision-making process came to a unanimous agreement to not increase rates today.

Additionally, the majority expressed their desire to further increase rates in the times ahead. Observe the dots situated below, accompanied by our scribbles depicted in red. (The arrow indicates the current rate.)

Once again, the rates were not increased today. *shrugs*

Many individuals, including those who comment, economists, and journalists, were perplexed. They questioned why the authorities would not simply increase the rates now since they must continue to increase.

Fed Chair Powell was asked by Nick Timiraos from the WSJ about a particular issue, and he responded with a metaphor that everyone could understand. This included smart economists on the Fed staff who are good at math, as well as people who work in regional banks and prefer simpler explanations. Even journalists who may not be experts in economics, but want to communicate effectively with Americans, found Powell's explanation clear and easy to follow.

Powell stated that the topic of speed is distinct from the topic of level. He noted that speed was crucial in the previous year, but as we approach our destination, it is sensible to decrease our pace.

Is this voyage a competition? A tour? A daily routine? It's only logical to make the contrast if the Imaginary Economy Car won't crash into a solid wall at high speed. Hence, Powell might be indicating a sense of certainty that there's no impending financial catastrophe. Perhaps?

Towards the end of trading, there has been a small increase in stocks despite experiencing a drop of up to 0.7% due to the statement earlier. This can be considered positive news.