pedal to the metal approach when the economy would have called for something else. Let's take the fourth quarter of 2018. A relatively new Federal Reserve chair comes in, recognizes that the Fed had been co-opted by markets, recognizes as a ton of moral hazard that had built in, recognizes there was an unhealthy codependency between the Fed and the markets, and in the fourth quarter starts signaling that the Fed was going to tighten policies consistent with economic developments. If you remember, at that time the economy was doing extremely well, markets were just fine, liquidity was abundant. Markets have their second day per tantrum. The first one was in 2013, May, June, they had their second one. This one plays out in the equity market in a big way and come the beginning of January 2019, Chair Powell undertakes a massive U-turn that is not warranted by economic developments. It was in response to financial instability. Now, if you are charitable, you would say, well, of course it's (18/43)
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