Volcker had Reagan had backing him; but Powell has Biden who does not back him. So far Powell has more balls than Burns, but does it matter? It may not be Jerome Powell’s call if he is Burns or Volcker. He will be Powell.
The market is not strong because of potential Fed actions. The market is up because of existing Treasury actions
Post FOMC Observation topics:
Why The Fed isn’t Easing
Why Stocks remain resilient
Hartnett’s Bubble
Fiscal Dominance
The 1970’s Fed/Treasury dynamic
Arthur Burns Explains himself (pdf attached)
The 1970s are Back
Economy Bifurcated
1970s stagflation vs inflation now?
Fiscal/Monetary optionality
BTFP- More banks will go under
JPM will buy some
The End of Financialization
The Rebirth of Operating Leverage
Re-Summarizing
The RRP Signpost
Note: If you are pressed for time, but wish to see the parallels drawn between the Burns Era ( using his own words) and now read the section Spooky Parallels
The Burns Lecture referenced:
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