Will Wall Street Admit The Obvious? Probably Not
Powell can reassert the strong pimp hand today for a mere +25 bps.
Current narrative is that, since the Fed cannot hike forever, that ZIRP is inevitable so let's front-run it.
ZIRP is what Wall Street wants, like any junkie jonesing for a fix.
The Fed needs to just stop futzing with interest rates and let the markets resume their proper role in determining natural rates of interest.
Powell can reassert the strong pimp hand today for a mere +25 bps.
Current narrative is that, since the Fed cannot hike forever, that ZIRP is inevitable so let's front-run it.
ZIRP is what Wall Street wants, like any junkie jonesing for a fix.
The Fed needs to just stop futzing with interest rates and let the markets resume their proper role in determining natural rates of interest.