10Y dollar Dow economy fed fomc gold jerome powell

Breaker One-Niner

The market's verdict was as follows.

This: https://twitter.com/heisenbergrpt/status/976539627455729665 That shit right there isn't going to work forever. Irrespective of whether you're in favor of moving away from a regime based on #failing (as Trump would put it) academic models and even if you think we need less jargon from the Ivory Tower academic crowd (Taleb's "pseudo experts"), the fact is that we've been relying on that for a long time and if you think transitioning away from it is going to be seamless, you've got another thing coming. Remember, there's a parallel to politics here. More than a few ostensibly rational/smart people thought we should give a political neophyte (Trump) "a chance" - and look how that turned out. I'm calling it right now: if "Fed speak" turns into "plain speak", under Powell, you'll get more volatility from markets precisely because there won't be as much room for people to hear what they want to hear.   I think what's underappreciated when it comes to the two-way communication loop between markets and policymakers is that paradoxically, obfuscation is critical. If the relationship between market participants and policymakers is to remain reflexive, you can't have a situatio
Subscribe or log in to read the rest of this content.

2 comments on “Breaker One-Niner

  1. Marty says:

    Is it possible that the nature of a Fed Chairperson’s education is related to the manner in which they think, or are trained or understand how deliver of what they know at these hearings?

    Volker graduated with a University degree and graduate degree (MA) in Economics and a fellowship from the London School of Economics; Greenspan, Bernanke and Yellen each graduated with University degree and graduate degrees (MA and PhD) in Economics; all of the above the above immersed themselves in the field of economics (whether academics or commercial) post-graduation until appointed to serve as Fed Chairman.

    Powell took a different route, graduating Princeton with an AB in Political Science and from Georgetown with a law degree. Then he served as a law clerk for an appeals judge, and worked as a transactional lawyer in banking, finance, mergers and acquisitions and then in 1990 took a three-year stint with the government. Then he worked here and there but not as if “economist.” Finally, in 2011 he was nominated to the Federal Reserve Board by Obama, until Trump made him chairman.

  2. gottaloveanalysts says:

    The Fed chairs are (were) all throwing darts. Maybe I should care about what number on the board that the Fed chair is calling before the toss — but I care more that he has a blindfold on…

Speak your mind

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Skip to toolbar