Powell had to attempt a modest reset of market expectations. This wasn’t going to be uneventful. Then Trump made it worse.
Markets will not be overjoyed if the Fed attempts walking back its “an ounce of prevention…”
Economic “research” about the zero lower bound is a crock…
Record stock prices don’t matter. Booming corporate Credit is no issue. June’s big gain in payrolls and a 3.7% unemployment rate are not part of the decision function.
He’s witnessed a lot of “crazy” in his three decades of closely following various Bubble markets, but Doug Noland says nothing compares with today’s bond market bubble.
Is the market’s 100% probability for a July rate cut justifiable in the event of market exuberance in response to improved prospects for a successful completion of trade negotiations?