Research Affiliates’ Arnott: Jerome Powell has ‘no clue’

‘The Fed has 400 PhD economists producing forecasts of GDP, unemployment, of inflation, that are slightly worse than a coin toss. If they cannot forecast it, how are they going to manage it?’

Jamie Gordon

Rob Arnott

Federal Reserve chair Jerome Powell has “no clue” and forecasts produced by the US central bank are “slightly worse than a coin toss”, according to Rob Arnott, founder and chairman of quantitative investing specialists Research Affiliates.

Arnott (pictured) told attendees of ETF Stream’s ETF Ecosystem Unwrapped (EEU) 2023 event he was “quite appalled” when Powell “came up with the notion of transitory inflation” at a time when US core price inflation (CPI) had “just passed 4% and was accelerating”.

This article first appeared in ETF Insider, ETF Stream's monthly ETF magazine for professional investors in Europe. To read the full article, click here.

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