So one way or another the gap in views will have to be bridged. Fed Chairman Jerome Powell will have more opportunities to do that and head off potential market volatility starting in January, when he’ll begin holding press conferences after every meeting, Schneider said.
“The question is, is there a moment of reckoning coming?” said Robin Brooks, chief economist at the Institute of International Finance. “Will Jay Powell have to at some point stand up in front of markets and say, ‘Hey guys, you have this wrong, you need to price more out the curve.’
“But to communicate that is quite tricky because a hawkish surprise risks upsetting stock markets,” Brooks said. “And that risks upsetting some of his main constituents, including in the White House.”
This story provided by Bloomberg News.