Goldman admits the Fed has lost control
“Yet as we noted in January, being held hostage, or captive, by the market is nothing new to Powell; in fact, it was way back when in March 2013, ahead of the Fed’s taper announcement, that the Fed chair first realized that it was not the Fed that controls the market, but rather – after years of ZIRP and QE – the Fed had become a hostage of the market’s every whim. And now, none other than the world’s biggest incubator of central bankers, Goldman admits as much.”
USAGOLD note: We’ve alluded to the Fed’s being forced to chase the market on rates previously in connection with recent thinking from Jeffery Gundlach. This piece by Tyler Durden is one for the deep-thinkers out there. Be aware that reading it could upend the comforting belief that the Fed is in control of the situation . . .