In a strong economy, the Fed doesn’t want to hold your hand

WHAT’s in a word? When it comes to the Federal Reserve, a lot. The removal of “accommodative” from the Fed’s statement on Wednesday was interpreted as a sign that the Fed is approaching the end of its cycle of interest-rate hikes, and bond yields fell slightly.

But the real story is about rising uncertainty as forward guidance is replaced with an implicit shrug of Fed Chair Jerome Powell’s well-tailored shoulders.