What Powell taketh away, Powell also giveth. Risk sentiment has rebounded over the past week, helped by Powell’s dovish remarks on 4 January. This, however, marks the second substantial 180-degree turn by the Fed Chair in recent months, prompting questions as to the validity of his signalling. The previous 180-degree turn came after his October remarks. Back then he said the Fed was “a long way from neutral”, only to back-pedal six weeks later by saying rates were “just below” estimates of neutral. At the press conference in December, he then said the balance sheet runoff was on “autopilot” (it didn’t even sound as ... (full story)