For reasons I can't fathom, investors are obsessed with central bankers, hanging on their every word, parsing out every little detail or tone of voice. For the better part of a decade, we've seen this obsession send markets zooming ahead in moments, or selling off steeply just as fast, all totally divorced from economic fundamentals.
So they can bring gains or losses in short order, but I submit that, in fact, nearly seven years of near-zero, zero, and sub-zero interest rates have made it clear that central bankers have lost control, with very little in the way of real influence beyond short-term rates.
Tags:The Fed
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