Posts Tagged ‘ taper tantrum ’

Inmates Running the Asylum; Fed Policy 8-years into Recovery

September 16, 2016
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Inmates Running the Asylum; Fed Policy 8-years into Recovery

Last week, a Fed Governor, made comments hitting Bloomberg, that the Fed was not a handmaiden to the markets. The comments, not part of a major speech, and difficult to find on Google, were striking, and provocative, conjuring memories of a period when this would never need to be said. Today’s baffling Fed communication strategy involves speeches of voting members, non-voting members, incorporates guidance, including some guidance that makes its way to the cover of the WSJ through Jon Hilsenrath, and includes a full blown black-out period where no comments are allowed at all.¬†What happened to the time when there was a Fed meeting, and sometimes unexpected things happened? Post-financial crisis, markets are viewed as fragile by policy makers. The extent to which markets are actually fragile is debatable,...

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