PIMCO Lashes Out At “Flip-Flopping” Fed: ‘Stop Focusing On The Stock Market’

Jon Alternative Media, Blogosphere, Economy, Fiscal Policies, Market Commentary

The #Fed should focus on rising wages, not the stock market. pic.twitter.com/gPpD0T7Iv5
— PIMCO (@PIMCO) July 12, 2016

We truly live in interesting times: what was once tinfoil conspiracy theory, namely that the Fed is entirely focused on propping up the stock market, has become not only mainstream thought, but overnight in a scathing essay by prominent PIMCO economists, including Mihir Worah, PIMCO blasted the Fed for constantly “flip-flopping”, and telling Janet Yellen that “the Fed should focus on rising wages, not the stock market.”
Of course, the Fed’s traditional response is a well-rehearsed one: record stock prices will eventually “trickle down” into higher wages. Yes, it has not happened so far in the past 7 years of unorthodox monetary policies, but the Fed is absolutely confident it will eventually… just not yet.
But going back to the punchline, what is most amazing is that we now live in a day and age, when the world’s biggest bond fund managers is telling the Fed to stop reacting to every downtick in the market, and actually regain some of its credibility. To wit:

This post was published at Zero Hedge on Jul 12, 2016.