Loading ...Even with the S&P at highs, unemployment at lows, financial conditions loose, and “money” growing crazily, the Fed apparently has no alternative but to cut rates for a third time in three months – to avoid at all cost the Scourge of Disappointing Markets. At the minimum, the Fed should signal it will now pause. Most view this as unlikely, as such a bold maneuver risks upsetting fragile markets (trading at record highs). It’s hard to believe the FOMC is comfortable having highly speculative markets dictate monetary policy, but it’s similarly difficult to see them willing to break this dynamic. Right, no appetite for rattling markets.
I’ll be really curious to see how history views this cast of characters. When asked about his future, Draghi said “ask my wife.” I’ll assume he’ll follow in Dr. Bernanke’s footsteps – rake in millions. It’s an absolutely wonderful time to be an ex head of one of the world’s major experimental central banks. Such powerful incentives to keep the game going – the Bubble inflating. “‘Never Give Up!’ Draghi Tells Lagarde as He Leaves ECB,” read a Reuters headline.