One way or the other, people should ask themselves to what extent they want one isolated group of people to have this much power...
They dont move markets. People in the markets move them. The fact that people are reacting to the Fed's statement, which contained no surprise, shows the insanity of markets.
Who didnt know the Fed was going to talk about rate hikes? It was not kept a secret. And the Fed, the ultimate manager in expectations since that is all they can affect, is only doing what everyone and their brother was complaining about: inflation.
Ironic when the Fed gives the market (and all the talking heads) what they want, they still have a cow. Of course, the Fed has no chance of 4 rate hikes. I bet even 2 is a stretch.
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That right there is worth to stop and reflect on. I was quite surprised to see such a strong reaction to something that appeared to have been priced in for the most part. My guess is that this non-news will be shaken off tomorrow.
I am not. Too many are indoctrinated into the power of the Fed. They believe this entity actually has power to fix things. It does not.
With interest rates, their own research shows the impact of moves in the Fed Funds rate diminishes at the 5Y and has no correlation at the 10Y, which has a huge correlation to mortgage rates.
So the rates most people care about the Fed has no impact upon.
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