Crisis-Weary Fed Has 9%-Tall Mountain Left To Climb: Quant

Crisis-Weary Fed Has 9%-Tall Mountain Left To Climb: Quant

Jerome Powell is a victim of circumstance, a golfer who "can't putt," a professional fall guy, a "dangerous man" and any number of other things, depending on who you ask and what year it is. One thing Powell isn't, is comfortable. His tenure as Fed Chair belongs in the dictionary next to the entry for "fraught." Recall that on his very first day in the big seat, the VIX ETN complex imploded. It's been one crisis after another since then (figure below). Powell has endured a trade war, unceas
Subscribe or log in to read the rest of this content.

6 thoughts on “Crisis-Weary Fed Has 9%-Tall Mountain Left To Climb: Quant

  1. This seems like a numbers guy throwing numbers around without consideration for what those numbers will mean in the real world. There is no way that an additional 900 bp of tightening will be necessary to control inflation. The global economy will be deep in financial crisis and massive recession long before that point, and inflation will be but a nostalgic memory.

    1. Remember, Volcker pushed the policy rate to 20%, and the Prime Rate rose to 21.5%. During his era the funds rate averaged 11.7%! Man that was so hot. USTs just plunged and I got a free house from the gains. My portfolio was built on using other peoples’ money to buy discount Treasury bonds. No risk, guaranteed money. Stocks were trash and dividends would not cut it. I still have remnants from that era, a 6.75% UST due in ’26. My grandson will be able to go to college anywhere he wants from a large stripped treasury I bought in the late 1980s. The higher rates go the cheaper old bonds get.

Speak your mind

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

NEWSROOM crewneck & prints