The Fed Is Not the Stock Market’s Friend Right Now

5 days 12 hours ago
One of the Federal Reserve’s most telling statements about markets came from Chair Jerome Powell on June 15 when the central bank announced its biggest rate hike since 1994: “Over the course of this year, financial markets have responded and have generally shown that they understand the path we're laying out.” When Powell said that, the S&P 500 had already fallen by more than 20% from its Jan. 4 high. In other words, Powell all but confirmed that the 2022 market rout was exactly what he and his colleagues wanted.

The Fed Is Smoked in 3 Parts

6 days 6 hours ago
Investors like to focus on QE and QT, because the quantity of money has an immediate effect on risk assets. In the same way, we like to focus on the Fed Funds Rate as the price of money also has a dramatic effect on risk assets. Oddly, we rarely focus on the actual banking function ...
5 hours 22 minutes ago
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