Why Again is Powell So Weak on the Funds Rate?

Here’s why. Much as I combated tooth and nail the BOND BEAR MARKET!!! b/s that got everyone off sides (risk ‘off’ bonds were contrarian bullish amid the hype) into the big stock market top in September so too will I combat the FED IS ROLLING OVER because… TRUMP!!!… because… the PPT!!!… because THEY ARE SPINLESS SYCOPHANTS to the WALL ST POWER BROKERS!!! b/s that boorish market bears have complained about for the last month of market rally activity.

Well of course the Fed is ultimately an agent of the status quo, of rising asset markets. But in this case Powell went from very strong to weak because of our boring story playing out in bonds; duh, yields – including short-term yields that direct Fed action – are dropping… duh. The most intense of it has been since mid-December and it was since then that Mr. Powell flipped.

Follow the Twitter heroes who want your eyeballs all you want. They rant, they rave and they express the hell fire and brimstone you yourself want to express (but are too well mannered to).

The 2yr yield (from CNBC.com) is down again.

So is the 5yr.

5 year yield

So is the 10yr.

10 year yield

What got me on this? Anthony Sanders sees possible seeds of a Fed target rate cut coming. The reason, like the charts above, are because of market signals, not the imaginings of some tin foil hat wearing self-promoter with a big mouth reaping eyeballs (ref. the old BOC song, Harvester of Eyes).

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