Founders: Fed Flip-Flops, But Why?

Even the Banks are befuddled

"The Fed doesn’t seem to care about how relaxed financial markets are - they see progress on disinflation and are happy to lay out their forecasts and let markets do what they want.

-ZH quoting DB

Did Powell Just Cave?

Yesterday, post the FOMC, meeting we put this open-ended question on social media:

Powell can’t want higher stocks. He doesn’t want bonds up or he would’ve done something in October.

He doesn’t want gold higher.He doesn’t want bitcoin higher. He can’t want houses to go up more. So what does he want?

Does he want dollar weaker? He might. Either something is cracked domestically we don’t see or this is internationally motivated.

If not…

Feels Like bait

To finish that thought: If not, then it is politically motivated. Even The Fed’s trusted mouthpiece, Nick Timaros was befuddled at the Fed Flip-Flop saying:

The Powell pivot begins.

Dec 1: “It would be premature to … speculate on when policy might ease.”

Dec 13: Rate cuts are something that “begins to come into view” and “clearly is a topic of discussion.”

What a difference two weeks can make. https://t.co/Vox8LKSgf0

— Nick Timiraos (@NickTimiraos) December 13, 2023

If something is not broken behind the scenes and no other nation is in jeopardy, then something is off in Powell’s decision.