Internal disputes of the Federal Reserve: are disagreements over rate cuts a cover for a power struggle?



The Federal Reserve (Fed) is once again gearing up to put on a show in their sharp suits! Early Thursday morning at this interest rate meeting, everything appears calm, but in reality, passions are boiling. Trump is practically spitting at Powell, shouting for rate cuts, but this old gang at the Fed is pretending not to hear, interest rates? Still the same! But the real sensation is that a fire is starting in their own backyard—Waller and Bauman, these "insiders", have sharpened their knives and are preparing to take the opposite stance! It has been five years since the Fed made such loud statements, and even more frightening, since Clinton danced in the White House, we haven't seen two "privileged" members rise up simultaneously!

In normal years, if these two giants were banging on the table demanding lower interest rates, the market would have long been throwing a party with drums and fireworks — this is clearly a signal for easing monetary policy! At the next meeting, lowering rates is not on the agenda? But now? Ha! Old wolf from Wall Street Tom Ace said: "What are you tying that big tail for! As if no one understands!" The chair of Powell will be vacant next May! Around Waller and Bauman, eyes turned green! Is this the time to go out and shout about lowering rates?

It is obvious that this is an offering for the understanding king! Lick! Just lick! I don’t care if the economic data is alive, first I will get to the place of the new chairman, and then I will figure it out! Even more disgusting is that it doesn’t matter whether these two really care about the economy, the market already sees them as clowns — "Play! Keep playing! I will watch this as a monkey show!"

The sarcasm is that Powell used to praise himself, claiming that under his leadership everything was cohesive, like a single whole! And here the Japanese actuary Tangadze throws out the data and straight to the face: under Powell, this group votes as synchronously as in military training! For the first time in history, the "dissonance" is actually not for the country and the people, but for the capture of positions! Political black hands have already reached out to the Federal Reserve's treasury, what independence can we talk about? "Independence, damn it! Soon it will become the backyard of the White House!"

The market is reacting even more sharply! On Tuesday, the stock market symbolically fell just to catch its breath after the insane growth. But the bond market just exploded! The yield on 10-year U.S. Treasury bonds plummeted as if off a cliff, dropping nearly 9 basis points! Investors appear outwardly calm, like old dogs, but inside they are boiling: waiting for the Federal Reserve (FRS) to finish its squabbles, and worse still, for the Friday jobs report to explode!

Macquarie analysts grimly point out in their report: the bird cries that the economy is in bad shape are not just empty talk; the US really has hidden problems. September rate cuts? The gaming table is already set! Players in the futures market are betting with burning eyes — the probability of actions in September exceeds 60%, and the probability of a double rate cut by the end of the year has already reached 65%!

Disgusting! Just damn disgusting! A group of technocrats who were supposed to monitor inflation and employment have turned into actors maneuvering in bureaucratic games! Huge decisions regarding mortgages and auto loans for ordinary people have become a springboard for their career advancement! How can this be tolerated?! Why are people from Wall Street watching this from the sidelines? "We figured this out a long time ago! A bad play is being performed!" Those who vote against, with their "deep insights," wrapped in a sugary coating of economic analysis, are actually filled with personal ambition and thirst for power!

I'm just asking you: when do the Federal Reserve's counters start clicking due to political ambitions, when will the economic tsunami really occur, how many saving bullets does this central bank, which has already lost its power, have left? And how are they going to defend themselves against the disaster? When the next crisis really hits, who the hell will be the first to be torn to shreds?! Will it be the big players on Wall Street? Or old John selling hot dogs on the corner?!
Where will the market go?........
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Panda_Cryptvip
· 07-30 09:46
Down most consider....
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