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A Unified Theory Of Everything: From The Fed, To Volatility, To LIBOR To BTFD
Over the past, oh, I don't know, four weeks or so, we've talked a lot about what "caused" February's rout (inflation scare coupled with the realization of the VIX ETP rebalance risk, subsequent VIX spike and forced de-risking by the systematic crowd) and what factors have recently conspired to constrain the market's ability to fully recover from that rather harrowing episode (trade war jitters, domestic political turmoil, geopolitical tension catalyzed by an escalation in Syria, etc.).
Playin
The U.S. Congress established three key objectives for monetary policy in the Federal Reserve Act: maximizing employment (done), stabilizing prices (done, low inflation), and moderating long-term interest rates (done, low interest rates). Where the fuck does it mention protecting the market?