Ok time for a little soapbox time.
It’s very popular to criticize the Federal Reserve.
And to be honest, it’s nothing new.
Back in the 70’s when Paul Vockler was in charge, he jacked up interest rates to crazy high levels to help curb inflation. Plenty of critics there.
And while Greenspan was basically a god during his reign, the decision to keep rates too low too long definitely helped to push the housing bubble.
Finally, back when Bernanke was chair it was super easy to make fun of him because the market was in the toilet. In hindsight the decisions they made could have preserved the financial system… we’ll never truly know because a “control group” doesn’t exactly exist.
Which brings us to the tenure of Janet Yellen.
It’s not about the policy decisions.
It’s about the lack of consistency from the entire Board.
Yesterday we had Yellen talk and say that the baseline scenario may have too much downside risk to justify taking action.
And then Evans this morning started pushing rate hikes again.
This non-unified message has roiled markets for MONTHS.
It’s been going on since 2015.
I don’t recall the Fed Board of Governors being this divided during Bernanke or Greenspan.
And sure, you have the rate hawks and the rate doves… but they normally do it behind closed doors.
It seems that every day another joker is on TV contradicting the Fed chair.
It’s absurd.
Ok stepping off the soapbox.