Jon Hilsenrath: Jerome Powell's press conference triggered market volatility for 2022

Wall Street Journal senior writer Jon Hilsenrath joined "The Claman Countdown" Wednesday with reaction to the economic "uncertainty" in Federal Reserve Chair Jerome Powell's news conference. 

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JON HILSENRATH: Because I think that's really the story that comes out of this press conference – is market volatility. When you put together everything that Jay Powell said, he said, 'Look this, this recovery is not going to look anything, it hasn't looked anything like the recovery last time around.' Therefore, the plan that they had last time around, after the ‘08 - ’09 crisis, has to be torn up and thrown out. The last crisis, they came out, they raised rates very gradually. They took a long time to do it. They had a very slow unwind of the balance sheet. He says they're tearing that up, and they're going to be having discussions meeting by meeting. 

So the Fed is uncertain about how this is going to play out in terms of how fast they're going to have to raise interest rates, how far they're going to have to raise interest rates, and what they're going to have to do to the balance sheet. There it is, the volatility index. And because of the Fed's uncertainty, I think the market is digesting that its uncertain. And I think that the watchword we're going to have for the year 2022 is going to be volatility, which really isn't great news for market values… I think it's going to be a volatile year for the market, and that's what Jay Powell triggered today. 

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