The real product of the Fed these days is not monetary policy but disbelief. People can’t believe the amount of speculation, conversation and outright complexity that results in… nothing.
Yellen is basically presiding over the deflation of the Fed’s reputation. Every month more and more credibility leaks away.
And this month was no exception. For weeks leading up to the FOMC meeting on Wednesday, there were grim articles and interviews stating that a ‘hike’ was possible if not probable.
And again nothing happened. I’m not surprised of course.
Since we started TDV, I’ve said that they’d never raise rates again (and have had people laughing at me for more than six years now for that stance.
This post was published at Dollar Vigilante on SEPTEMBER 22, 2016.