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The Fed Put Returns

Powell is no different than the countless of bureaucrats who come to DC with a set agenda only to be humiliated by the whims of a cranky politician. And it’s not like Powell failed to foresee the downside risk of raising rates, he simply thought market volatility was something he could ignore, perhaps because the economic data would eventually vindicate him. But that’s not how things work. Wall Street did not want rate hikes. Neither did Trump. That the economy was firing on all cylinders was besides the point. Investors only respond to markets going up or down and the expectation was for markets to rip higher. Codependence is bitch and the market can’t let go of the Fed.

Recommended reading:
Spare a Thought for Jerome Powell

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