Goldilocks Channels Sinatra

Late in Chairman Powell’s post-FOMC press conference (at the 45:12 mark) he was asked whether he had any regrets about his time in office and answered, “I’ve had a few.”  Several wags on social media –myself included – picked up on the joke immediately.  He was quoting the song “My Way”.

Although the song is considered one of Frank Sinatra’s trademarks, the lyrics were penned by Paul Anka atop an unrelated French song.  It’s one of the rare songs that could withstand versions by performers as diverse as Elvis Presley, Sid Vicious, and a random drunk guy at karaoke night.  It occurred to me that the song is perhaps the simplest way to annotate the Chairman’s comments yesterday.

My Way, lyrics by Paul Anka, annotations by the author:

And now the end is near – of the hiking cycle
And so I face the final curtain – of this press conference
My friend, I’ll say it clear – in keeping with the Fed’s view on transparency
I’ll state my case of which I’m certain – except when I’m data dependent

I’ve lived a life that’s full – Fed Chair after partnership at Carlyle Group
I travelled each and every highway – DC, Jackson Hole, Davos, etc.
And more, much more than this – QE, QT, ZIRP, et al…
I did it my way – always leaving room for some positive interpretation of my comments

Regrets I’ve had a few – as noted, see the 45:12 mark
But then again, too few to mention – see above
I did what I had to do – raised rates in ‘18, cut them in ’19 and ‘20, raised them 5%…
And saw it through without exemption – except, of course, when we reversed a policy

I planned each chartered course – the policy decisions are on me, for better or worse
Each careful step along the by-way – even when we’ve been too cautious about changing policies
And more, much more than this – repos, reverse repos, bank liquidity injections
I did it my way – not Volcker’s, Greenspan’s, Bernanke’s, Yellen’s

Yes, there were times, I’m sure you knew – um…, yeah
When I bit off more than I could chew – too loose for too long, now maybe too tight for too long…
But through it all when there was doubt – doubt?
I ate it up and spit it out – I see your recession fears and say that we’re continuing to fight inflation
I faced it all and I stood tall – I’ve done a press conference every six weeks without fail
And did it my way – mic drop