The Fed talks and the US market rallies. Yesterday marked the third time in as many months when the Fed was able to completely turn the market around. It doesn’t seem to matter what they say, as long as they say something.
The Fed’s newest piece of propaganda and subterfuge is one giant hand to pat the market on the back while it fashions a long jagged knife made of unicorn bone carved by the Hatari Honzo himself and tipped with the alien blood from alien. Yes the Fed is going to stab the market in the back but hey don’t worry about the price of oil. It’s temporary they say. Don’t worry about sub 2% inflation, it’s temporary too. Don’t worry about the US economy, it’s doing fine. We can be patient. We’ll stab the market very gently.
Yeah… but you are still stabbing the market with a alien blood tipped unicorn blade! It can’t handle that and I’m not alone in my thoughts. Just hours after the Fed released the minutes, Chicago Fed President spoke up and said “raising rates at the wrong time would be a catastrophe”. And that’s precisely what the Fed seems prepared to do. They want to get the first rate hike out of the way as soon as possible. That way, with a firm foothold and a calm market they can try and slowly normalize policy. But I have my doubts. Keep your eyes spotted for any flying pigs.