Wednesday, May 25, 2016

#TheFed As The Maestro, An Illusion To Be Broken In Coming Crisis

The Fed, a follower of market forces like everyone else (sorry true believers), will raise rates because the invisible hand will drive them higher for decades. The majority which includes politicians believes the Fed controls markets, the economy, and can fix everything. They're control is limited to short-term rates at best in the United States and lip-service.

This means the majority, a day late and dollar short in terms of timing and understanding of markets and market forces, will lose confidence that the coming crisis when central planners struggle to contain it. That's why crisis are define by wild, unexpected moves in all sorts of markets.

Headline: St Louis Fed Pres James Bullard says June rate hike not set in stone, but labor data favorable

A U.S. Federal Reserve rate hike in June or July wasn't set in stone, but labor data suggested it was time to pull the trigger, St. Louis Fed President James Bullard told CNBC.

"There's no reason to prejudge June," Bullard said, adding that the Federal Open Markets Committee would look at the data and decide then.



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