The Fed’s main mission has become the care and feeding of speculators so the stock market stays afloat. From David Stockman at lewrockwell.com:
It doesn’t get more pathetic than this. After the Fed’s “disappointing” 25 basis point rate cut, divided FOMC vote and failure to guarantee more cuts just around the corner, Pusillanimous Powell saw the markets barfing and therefore stumbled forth with the following 20-word ignition switch:
It is certainly possible that we’ll need to resume the organic growth of the balance sheet sooner than we thought.”
And then the algos were off to the races the moment Powell implicitly confirmed that QE4 is indeed on the way. At exactly 2:50pm stocks spiked and the dollar slumped.
So there can no longer be any doubt at all that the Mighty Fed has been reduced to the status of Wall Street’s pitiful bitch and that the Donald might as well fire Chairman Powell and replace him with, well, a weathervane.
