The "Scared & Desperate" Fed Is Playing The Most Dangerous Game

How can I not talk about the Fed? How can I not talk about the daily jawboning? It is all around us. Every. Single. Day.

And it keeps working.

I feel like I’m being reduced to a loon conspiracy theorist documenting the very reality of it. But I’m not. From my perch I’m doing a public service doing it, because the background motivation for why it is being done reveals a deeper and disturbing truth: They are scared, they are worried and they are desperate to keep the balls in the air.

In my view it’s disingenuous to not acknowledge the real impact central banks have on markets and assess the risk implications.

Yesterday the Fed went full circus. It was stunning to watch and I suspect they made a couple of mistakes by revealing things they shouldn’t have.

Not a surprise Bullard wants to see cuts, but it was Clarida and Williams who dropped the bombs. Wait for bad data? Nah, just cut preemptively. A full abandonment of the ‘data dependency’ charade. To ‘influence markets’. Stated straight up for all to see. They are no longer even pretending.

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