Good luck out there – your fate rests on the shoulders of a diminutive economist with a pixie cut…
Now define “bad.”
Because we can’t do it anymore.
“A telling blow should be dealt to them who have not yet come to senses after the launch of our ICBM over the Japanese archipelago.”
So when it looked like the last, lonely U.S. reflationist was about to throw in the towel, it felt like everyone was suddenly scrambling around to explain why yields were too low – maybe in an attempt to appease the market Gods who are thought to dislike crowded trades.
“History’s verdict on presidents rests more than they might wish on the competence of the Fed during their time in the White House. When it comes to those other Fed appointments, the president would be smart to reflect on what made Fischer such a good choice and strive, for his own sake as well as everybody else’s, to choose as wisely.”
“There may be all sorts of dragons and monsters up in those hills.”
“Nostalgia for the regulatory neglect that prevailed before the crash is wholly misplaced.”
“…if the ninth year of expansion with unemployment approaching 4 percent is not the time for above-target inflation, when will that moment ever come?”
And here are the highlights from Yellen’s speech in Jackson Hole via Bloomberg..
“Frankly, if they won’t or, more likely, can’t tell us what they are planning to do, they should take a pass and stick to their economics and orthodoxies.”
“No, a surprise will most likely look like a Central Bank chief that attempts to put policy back on the previous tighter path.”
Just biding time…
Therein lies the irony…
And just like that, all of the good news trial balloons we got from McConnell on Monday (debt ceiling guarantee) and from Politico on Tuesday (tax reform moving ahead) were rendered null and void…
“Confidently dismissing the process as harmless for markets is a luxury they can’t indulge in.”