Two Words From the Fed, and Wall St. Jumps More Than 2%

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New American: While Fed Chair Jerome Powell was addressing the Economic Club of New York on Wednesday, the stock market was open, and it was listening. What it was listening for exceeded its expectations and stocks jumped in the final hours of trading by more than two percent, its biggest one-day gain since the end of March.

What was “the street” listening for? Anything that would soften Powell’s claim nearly two months earlier that interest rates were a “long way from neutral,” implying that the Fed was determined to slow the Trump economic juggernaut the only way it knew how: by raising interest rates. In response, the Dow Jones Industrial Average declined by more than 2,500 over the next several weeks.

What “the street” heard from Powell on Wednesday was this: “Interest rates are still low by historical standards, and they remain just below the broad range of estimates of the level that would be neutral for the economy — that is, neither speeding up nor slowing down growth.” more …

Opinion: Under the Obama administration, the Federal Reserve was in lockstep with the president creating 4 trillion in counterfeit money (QE) to bail out the economy. There was no special council despite numerous scandals, and Federal judges dutifully nodded with every executive order including amnesty to 5 million illegal refugees and federal funding for illegal sanctuary cities.

My how things have changed. Under the Trump administration:

  • One un-elected banker uses the power of the globalist Federal Reserve to crater markets, then change his position and cause a massive rally
  • One un-elected special council on a never ending hunt for Russian collusion has the power to topple the president
  • Un-elected Federal judges block the elected president and the elected Congress from banning migrants from terror nations and block an executive order denying funding to sanctuary cities

Definition of Shadow Government: A family of conspiracy theories based on the notion that real and actual political power resides not with publicly elected representatives but with private individuals who are exercising power behind the scenes, beyond the scrutiny of democratic institutions.

And all this time we thought this was a Constitutional Federal Republic.

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