Friday, February 24, 2017

Fed Worried Their Interventions To Lower Volatility Have Resulting In Volatility That's Too Low

News
The Fed minutes revealed that they're worried their interventions to lower volatility have resulting in volatility that's too low. Only one flaw in the Fed's reason, the assumption that the Fed controls anything by short-term rates. Volatility, a trend control by the invisible hand and cycles, is historical low (chart). Periods of low volatility are followed by periods of rising or high volatility. These periods existed before the creation of the Fed. While this revelation likely doesn't sit well with the conspiracy groups that needs some omniscient group that controls all markets, especially the ones moving against they're positions, they're probably not reading Insights regularly.

Chart


Headline: Now Even the Fed's Worried That Stock Volatility Is Too Low

VIX sits near 2 1/2-month bottom reached in late January

Reduced volatility is "inconsistent" with uncertainty: FOMC


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