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Dario Perkins suggests that the absence of forward guidance has intensified the market impact of unexpected central bank actions, whether they result in a surprise rate hike or a surprise hold.
Perkins argues that clearer communication could have helped reduce the significance of these decisions.
Perkins has previously commented on the need for regulatory action by central banks, stating that efforts to address AI-related financial risks may already be too late in recent remarks. He also questioned recent labor data, noting a 61,000 drop in hospitality jobs following revisions to prior gains. Both instances show Perkins' focus on unexpected developments and the importance of clear data and policy signals.