I told you I'd get you the rest of my Fed meeting notes soon, and (unlike the Fed) I always try to say what I mean.
Most of the little tidbits I gleaned from the latest meeting minutes (go here if you missed my expose earlier) are prevarications, obfuscations, or bald-faced lies.
Here are a few…
Lie No. 1: Equities Rise and Fall Because of Investor Behavior
Here's what they said…
Broad equity price indexes rose notably, reportedly reflecting in part investors' perceptions that tax reform was becoming more likely.
That's just BS. Markets rise on excess liquidity and fall when liquidity dries up, even a little. That hasn't happened yet, but it's coming.
Urgent: An $80 billion cover up? Feds use obscure loophole to threaten retirees… Read more…
Meanwhile, pundits, financial journos, and economists need "reasons" to fill out their narrative, the narrative they use to sucker you into handing over your hard-earned money.
Lie No. 2: Inflation Data Influences Spending
I want to interject this quote on the Fed's fixation on trying to boost inflation:
In discussing the implications of these developments, several participants expressed concern that the persistently weak inflation data could lead to a decline in longer-term inflation expectations or may have done so already. They pointed to low market-based measures of inflation compensation, declines in some survey measures of inflation expectations, or evidence from statistical models suggesting that the underlying trend in inflation had fallen in recent years…
There's not a shred of evidence that inflation expectations cause consumers to accelerate or delay spending. If this were true, no one would ever buy electronic goods, which are always falling in price.
About the Author
Financial Analyst, 50-year charting expert, finance + real estate pro, and market analyst; published and edited the Wall Street Examiner since 2000.