Someone mentiond that what the market is continueing to bully the fed......
My eternaly optomistic side says that, they will nut up at one point... Either that or he becomes the G. William Miller Redux.
Economic historians have generally considered Miller's short tenure unsuccessful. The high inflation that Miller allowed required harsh "shock therapy" treatment by his successor Paul Volcker to bring under control, which sent the U.S. economy into recession from 1980-1982. Steven Beckner, a Federal Reserve analyst, offered a particularly harsh assessment:
Under Arthur Burns, who chaired the Fed from 1970 to 1978, and under G. William
Miller, who was was chairman from January 1978 to August 1979, the Fed provided
the monetary fuel for an inflation that began as a flicker and grew into a
fearsome blaze... If Nixon appointee Burns lit the fire, Miller poured gasoline
on it during the administration of President Jimmy Carter. Without question the
most partisan and least respected chairman in the Fed's history, this former
Textron executive worked in tandem with fellow Carter appointee, Treasury
Secretary W. Michael Blumenthal, in pursuit of monetary policies that were
expansionist domestically and devaluations internationally. The goals were to
spur employment and exports, with little thought to the dollar's value. By early
1980, inflation was running at 14 percent.[6]
—Steven
Beckner, Back from the Brink: The Greenspan Years
We never learn, Like Children, we continue to do what in the short term seems good. But leads to long term pain....... It's like credit cards :)
Let me tell you why the fed won't cut this week.... Cause they said they are going to cut, They didn't say it as a warning, They said "we are going to cut" so that they didn't have to, till the meeting.
In the last stagflation cycle gold went from $100-$800.
this cycle it has gone from $500-????... Using that model it's going to $4000... I'm doubting that but $2000-$3000 isn't outside a reasonable target....
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