InternationalMarkets & Economy

Markets do matter to the Fed, but centrality changes from time to time

Start by sorting Wall Street propaganda and bad theories
  • Start by sorting Wall Street propaganda and bad theories in general from clear thinking about what’s actually happening and ahead.
  • Bad idea No. 1 is just silly, not damaging: The Fed’s September pass creates uncertainty.
  • Worst of all are the authoritative people in pinstripes who testify the economy would be better off with higher rates. This is financial creationism.

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Well, thank heavens that’s over. Not! It’s never over. Which is a good place to begin. Start by sorting Wall Street propaganda and bad theories in general from clear thinking about what’s actually happening and ahead. Bad idea No. 1 is just silly, not damaging: The Fed’s September pass creates uncertainty. There is always a market crew perched in highchairs, hammering sippy cups and rubber spoons and squalling, “Now! I wanna know NOW! When! How much!” Pay no attention to these overage toddlers. Uncertainty is the deal, in markets and life. It’s not the Fed’s job to bring certitude. There isn’t any. Your mommy and daddy are the center of the universe when you are two, but even as teenagers, most of us get the glimmer that we’re on our own. Bad idea No. 2 is corrosive -- now a semipolitical issue found commonly right-side, among anti-government types, but also from pure-market libertarians: We’re better off without the Fed. Or with a mechanical F...