Re: Jackson Hole
Originally Posted by
TommyIV
Powell's position is tough. Market players are greedy for more rate cuts despite those rate cuts possibly being more useful down the road. The Fed has obviously has a finite number of rate cuts to use and has taken three years to build to their current position. Investors and the President seam eager for them to throw the rate cuts away as quickly as possible as if that would not send the signal that a recession is imminent. But currently consumer numbers are strong and stocks are really not far off the highs.
The Fed's job should not be to move stock prices higher to satisfy current stock holders, but rather to keep the economy at a healthy growth and keep assets, such as stocks, from outrunning the economy to create potentially devastating bubbles. I sympathize with Jerome Powell and think his greatest problem is his inability to communicate reality without spooking investors and dealing with temper tantrums of those who don't want this remarkable year of gains to end; but the future health of the economy should be more important.
Amazing how so many non-economic-scholars seem to think they're the smartest in the room with regard to economics.
Even more bigly amazing is that anyone would even listen to them.
[COLOR=#0000ff][FONT=comic sans ms][I]"In the land of idiots, the moron is King."--Unknown[/I][/FONT][/COLOR]
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