what the fed really said
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Started by bear - Dec. 16, 2021, 9:52 a.m.

just my interpretation... but during yesterdays speech, here is what jay really said...

we don't think that we are behind the curve on inflation.  and... we will have to wait for more data to determine if we are behind the curve.  

the moment he said this the dollar reversed and dropped.  stocks suddenly jumped.  gold suddenly jumped.  the markets were expecting him to be more hawkish, and he was less hawkish. 

this is so bizarre,... we have the 3rd stock bubble in 22 years, we have the 2nd housing bubble in 15 years, etc, inflation is at the highest since the early 80's, and we have a bond bubble that is more extreme than anything over the last 5000 years, and the fed still keeps its emergency ultra low interest policy in place.

but hey... maybe they will slowly taper their bond buying program. 

this means the fed is scared to death at the idea of taking away the punch bowl.  the party goers would riot if they did.  

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By joj - Dec. 16, 2021, 10:25 a.m.
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I think it was more of a case of sell the hawkish rumor (Fed increasing the pace of the taper to 30 billion/month)....  Buy the fact.  Once the hawkish news was out, up went gold and stocks.

(They always say "data dependent", no matter what they are doing)

By MarkB - Dec. 16, 2021, 11:46 a.m.
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Sounds bullish for bonds.