Zero Hedge: Is all of the above a lie and The Fed sees liquidity issues? Maybe, but in a somewhat stunning moment of clarity for the business channel, CNBC’s Steve Liesman just ever-so-quietly dropped a hint as to the real reason why The Fed is so keen to cut-cut-cut…
In a brief 45 seconds, Liesman drops the “existential” threat argument for why Powell will do whatever it takes to stay in Trump’s good graces…
“If The Fed gets this wrong, I think that they think if they make a mistake here, The Fed could be gone…”
Opinion: Way to go Leisman. Gone is good. Time to let the Harvard/Yale/Princeton/Stanford PhDs go back to teaching. The bond market is quite efficient and a very old law of supply and demand is perfectly capable of determining the right level of interest rates.
If borrowing heats up to much the rate will go up and vice versa.
No more trying to second guess the Fed’s thinking. No more trying to parse every word in the Fed’s policy statement. No more printing counterfeit money with innocuous names like Quantitative Easing and Twist. No more financing massive deficits. No more massive market swings for a bad Fed call like last October that cratered the markets. No more watching the markets sit idle for days waiting for a decision.
Nah, it’s too good to be true and I don’t know how we get to Revelation 6:5-6 without ’em.