The nearly 2,000-point swing in the Dow Jones Industrial Average in the past two days is largely due to a lack of firm direction from Federal Reserve Chairman Jerome Powell and President Joe Biden.

This is according to an article in the New York Post citing "Biden and Powell's inflation incoherence."

The Dow rose by 932 points Wednesday when Powell said the Fed would refrain from increasing interest rates in increments of 75 basis points (BPS). On Thursday, the Dow was down 1,063 points, primarily due to Powell's continued claims that the 8.5% inflation rate is overblown and the Federal Reserve's plan to slowly unwind its $9 trillion balance sheet.

"Something changed Thursday again, and that something is the realization among many investors that Powell doesn't have a clue," writes NYP's Charles Gasparino. "Powell on Wednesday said he sees a soft landing for the economy with no stiff recession. Then he said there could be a 'softish' landing, whatever that means. Was he downplaying inflation for financial reasons, or as a political calculation for President Biden?"

Gasparino goes on to say that Powell bowed to former President Donald Trump's pressure to refrain from interest rate increases, which led to the Fed resorting to quantitative easing when COVID came on the scene. Powell then went on a pandemic relief spending spree at the behest of President Biden, Gasparino says, writing:

"Powell, in other words, is a two-time (and possibly three-time) loser on the interest rates and gauging inflation, investors signaled Thursday, which is why they took their profits on their Wednesday gains.

"The uncertainty and whipsawing markets will likely continue for some time because no one knows what to expect: The second coming of the legendary inflation hawk Paul Volker, or Powell contorting himself into the free-spending Janet Yellen."