All Conundrums Matter All Conundrums Matter

This is a syndicated repost courtesy of Alhambra Investments. To view original, click here. Reposted with permission.
Since we are this week hypocritically obsessing over monetary policy, particularly the federal funds rate end of it, it’s as good a time as any to review the full history of 21st century ‘conundrum.’ Janet Yellen’s Fed has run itself afoul of the bond market, just as Alan Greenspan’s Fed did in the middle 2000’s. But that latter example wasn’t truly the first conundrum for monetary policy. There remain a great many questions (in the mainstream, anyway) about the dot-coms.
If we define conundrum more broadly as I believe more appropriate, then it’s not just about UST yields long or short. It is instead the lack of (monetary) effect through federal funds rate management. In the early 2000’s this was apparent in a whole range of factors – starting with the stock market.

This post was published at Wall Street Examiner by Jeffrey P. Snider ‘ July 13, 2017.