Over the weekend I wrote an article pertaining to the now viewed “hawkish” statements being reported via the main stream business/financial media. In that article I made the following statement. To wit:
“The mainstream financial/business media was all a-buzz as if they had just heard the hidden meanings contained within some lost relic of antiquity. It was near laughable if not for the implications it truly contained. i.e., The Fed. is not going to move; they are pigeon holed by their own hands; and not only do they know it; but so does Wall Street.”
If you listened, read, or watched any of the dissecting, as well as the parsing, the only take away was: “They just might move and it’s apparent with the immediate selloff that Wall Street believes they might also!”
Some were near apoplectic that both Yellen, and Fischer, two dyed-in-the-wool Keynesian devotees, would together, at the same venue, strike what the media was hearing as “hawkish tones.” It was near comical in my view.
As I said in the above statement, and to reiterate: “The Fed. is not going to move; they are pigeon holed by their own hands; and not only do they know it; but so does Wall Street.”
The media didn’t just unlock some deep hidden meaning at Jackson Hole. No, what’s obvious, and what they reuse to see, is that the Fed. not only won’t move – they can’t! And they are showing just how pigeon holed they truly are with what can only be seen as desperate measures like setting up a Facebook™ page as to help get the word out about their good deeds. It borders on pathetic in my view.
If you want any more proof as to just how feckless the Fed’s credibility has become as it pertains to its “messaging” – just look at the “markets” as of this Monday. As I’m typing this the markets have once again soared since the open and are now some 13 or so points higher (using the S&P 500™) and is within spitting distance of another new, all time high. Yeah, “hawkish” sentiments inferred, indeed. What a joke.
Or, should I say – the joke is now on the Fed?
As the HFT cabal laughs all the way to the bank.
© 2016 Mark St.Cyr