Which will mess up the most – Fed, BOJ or PBOC?

Anyone hating their job at the moment should spare a thought for Federal Reserve head Jerome Powell. In real time, investors can observe the extent to which Chairman Powell is confused about the direction of US interest rates.

Traders have stopped laughing at former Treasury Secretary Lawrence Summers’ contention the Fed’s next step will be to tighten, not ease. There’s little humor to be found in the Fed’s dilemma as inflation gyrates, the dollar soars and US electioneering descends into chaos.

Loads of prominent economists still think Summers is dreaming. Among them is Mark Zandi, chief economist at Moody’s Analytics.