The Guardian view on the world economy: don’t drive on winding roads with a steering lock | Editorial

As Janet Yellen heads to Capitol Hill, it may be tempting to vow she will stick with her plan. She would do better to keep her options wide open in a world of financial flux

The way to earn authority is, very often, to say that something is going to happen before it does. In December, the chair of the Federal Reserve, Janet Yellen, was lauded for raising interest rates just when everyone expected it. The Fed also gave hints about the pace and scale of further rises later on. And if the future unfolds in line with the plan, the words of Ms Yellen will acquire extra weight - weight that is undoubtedly useful when you are steering the world's largest economy.

It may thus be tempting, and not only for reasons of pride, for Ms Yellen to pretend that not all that much has changed since the end of last year when she faces two committees on Capitol Hill on Wednesday and Thursday. But it is a temptation she should resist. For if nothing burnishes authority like foretelling the future, nothing breaks the spell of command like responding to changing facts with denial. The Fed rightly held back from rushing to conclusions about the recent wild swings in the markets last month. But it is now safe to conclude one thing: just how much there is that the powers that be don't know.

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