FOMC now says it will monitor employment.

It's a difficult job. You are printing billions everyday but can't keep any of it directly.

 

The Fed has always had a dual mandate lol.

 

I seem to remember the unemployment rate at 3.9% yet interest rates were at 1.0%. I thi9nk they waited like 5 years to raise it to 1.0% Then in March of 2020 the markets drop a tad, then back to zero and triple the QE. Pretty hard job handing out trillions.

 

Do you understand how QE works? And do you remember what happened during the last hike cycle?

 

Yes and Yes

 

Then what exactly is your problem with QE? Are you short spx from 3000?

 

He's not long enough

 

He's long NDX from 13,900 and is scared to book his massive profits. He's starting on a whining tear now about how badly parabolic the markets have gone. But he has yet to close his massively profitable trade. But there is zero risk in the markets, remember?

Split personality.

 

It's unnecessary don't you think? It completely distorts our free markets. I will agree sometimes it's necessary, just not all the time. We are not in a crisis. All the data proves it, yet the FOMC keeps its foot to the floor.

 

Uh, we are in a deflationary cycle:
1. Lots of debt limits inflation because companies and households have to prioritize paying down debt over investment
2. Population growth in the US and developed world has slowed dramatically over the past two decades
3. Technology is either revolutionary (think: cars, airplanes, etc.) or evolutionary (driving efficiency) -- right now, the technology we are seeing is primarily evolutionary, which reduces the demand of labor (job gets automated)

You should read Hoisington's quarterly reviews if you are a conservative, dislike the Fed, and want still want an intelligent take on markets (Dr. Lacy Hunt is an economist and bond fund manager based in Texas).