“The Fed has clearly decided that Trump’s policies will be inflationary – ignoring for a moment the forced-hand of a rate-cut today, they hiked their inflation and interest rate forecasts dramatically, with the latter catching up to the hawkish market’s perception.
Just a reminder – The Fed slashed rates by a dramatic 50bps (crisis-like move) less than 3 months ago!! And now – post-election – things are completely different.”
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Central banks have become the tail wagging the dog.
They should not have the power to move markets. Asset prices should be a function of earnings not a function of the ramblings of unelected bankers.
Last night we saw the Fed Chairman suddenly pivot on monetary policy settings to work against Trump’s proposed tariffs to make America great again.
The reason why I raise this is because our RBA also has too much power and not enough accountability.
Australians are suffering because of their reckless decisions and they aren’t being held accountable.
What’s worse is that there seems to be no indication that central banks have any solutions to the problems they created.
It’s time central banks were reined in and brought under the control of elected representatives of the people. They should not be independent.
Treasury needs to start building infrastructure using sovereign equity, not foreign debt that is at the mercy of foreign bankers.
Quote from:
https://www.zerohedge.com/markets/fomc-23
