What I’m going to tell you is probably going to go a fair way toward upending your sense of reality and everything you know to be true, at least as far as the markets go.
Think for a second how much mental energy, how many newspaper column inches, how many magazine articles, how many minutes of airtime are totally devoted to speculating on what the U.S. Federal Reserve’s going to do to interest rates.
There are journalists and cable TV pundits who spend entire careers covering the Fed. Every time the Fed’s Open Markets Committee meets, it’s like time stops, and every breath hinges on, “Will they raise rates? How much? How high?”
By statute, the FOMC circus must happen eight times a year, every five to eight weeks. And it’s even more frequent (and more protracted) if you count the media monkey circus surrounding it, the arcane rituals of painstakingly parsing out what the Fed is “telegraphing” or how the markets will “react.”
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And it’s all for nothing. That’s right. Nothing. It’s a sham…
…because the Fed does not control interest rates. And it hasn’t for years now.
Tags: The Fed
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