"All pretense has been laid to rest. Bears have been proven right. Markets are managed by a central planning committee. Jerome Powell’s spectacular policy reversal produced the strongest January market rally since 1987 demonstrating once again the ugly truth that the Fed remains the largest price discovery mechanism driving markets. Powell spoke once, twice and thrice in January and each time markets went:"
"Not earnings, nor revenues, not growth, nor fundamentals mattered. All play second fiddle to the workings and mutterings of central bankers. Why even pretend we have a free market system? A system that is never allowed to price in bad news for more than a few days is doomed to bubble toward infinity. Too urgent is the reflexive impulse to intervene, too desperate is the realization the economy is only one risk-off event away from a recession."
...
"Not only did the Fed kill off its credibility, it also looks to have overtly caved to President Trump’s public twitter demands to stop rate hikes and the “50Bs”. Trump demanded and Powell delivered. So much for backbone. None. Whether the Fed admits it or not the perception is awful. They caved to political and market pressure."
https://northmantrader.com/2019/02/03/all-hail-chairman-pow/
Submitted February 03, 2019 at 12:59PM by Obio1 http://bit.ly/2UGuHev
