Where once we dubbed him “Jerome ‘Dead Eye’ Powell” we now, well… you know.
I gave some crap to the Twitter rabble rousers who fever pitched the bearish mobs about the Fed’s dovish roll over (man, must they be pissed now) but Powell was only following bond market signals (and by extension the economy’s signals) as the Fed softened up after being firm while the bond market was driving up interest rates across the curve.
As noted in yesterday’s post about the evil incarnate itself also known as John Maynard Kenes, and the most cynical, long-term operation in theft and redistribution of wealth imaginable (that would be our lovely inflationary regime) the Fed is there to inflate. Late last year it saw the whites of the Continuum’s eyes (a breakout above the limiter) and it held firm in hawk mode.
This year it sees the backing off of yields and the drop in economic data and it does what it always does when the leveraged system allows, it friggin’ inflates, or tries like hell to. Today the Fed stated its goals in that area and if the Continuum and other bond yield measures continue to cooperate it could be a humdinger.
Here is the thing, those bears with Twitter megaphones leading the pitchfork wielding mobs against the Fed should realize that the weak Fed could ultimately be good news for their portfolios once the positive spin wears off.
Today bulls are reveling in the return of the “punch bowl” but that tanking 2 year yield you see in the picture (from Bloomberg) was already weak and has had the Fed comfortably on hold since it turned down hard in December (triggering Powell’s seeming acquiescence to Trump and the PTB in the minds of the loudmouth bears).
I would say not to personalize it. This is the fucked up system we have been operating within since I began managing my own funds in 2002. Nothing has changed and yet it seems like people get surprised by the same things over and over again.
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