Eggheads tardy in doing the right thing

FOMC finally to get a bit more serious about its hawkish stance

After delaying and probably hoping against hope it would not have to do this, the Fed has to begin a rate hiking regimen in tandem with a QT program to try to mop up the inflation it created in 2020 that has proven to be oh so not transitory.

The eggheads will meet. They will posture as if there is a decision to make as usual. Then they will put upon us a policy statement rendered from on high by a great and powerful committee. The mainstream financial media will play along as if we are all in tow to the powerful committee’s decision making. It’s a Kabuki Theater of the most grand order.

Meanwhile, let’s remember that the Fed did indeed hold out until the last possible minute before unleashing Mr. Bullard, Ms. Brainard…

And finally the man himself, Jerome Powell into the media to startle markets when they could have simply respected and been guided by indicators like the 3 month T-bill yield, which itself followed the 2 Treasury year yield in indicating the Fed to be lagging badly. It’s almost as if they made a conscious effort to do the right thing at the wrong time. They should have shut their collective pie hole and raised the Funds rate by .5% at the last meeting * instead of getting their jawbones into the media like that.

There are few people or entities I have less respect for than the faulty monetary regulator known as the US Federal Reserve.

* And even that would have been much too late.

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This Post Has 2 Comments

  1. Henry Kaufman

    its just another example of the Fed incompetence . The bond market will eventually cast its final vote….but it needs to finish going through the formalities…..and that process has most likely been accelerated ……lol

    1. Gary

      Agree. It’s always the bond market towing these big brains around and the media sensationalizing their perceived power.

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