The Fed continues…!

We had a report about yesterday’s icky action all set for you. We could have talked about any number of things…the Russell again leading on any down move, the Regional Banks rolling over and a few other tidbits but only one thing stood out for us. It is the same thing that stopped the markets from going into a real correction in October. The Fed is at it again. They never stop.

Yesterday…Fed’s Dudley says “pace of tightening to depend on market response, not just economic outlook.” There you go! They got your back. They are watching markets and they are affecting markets. In other words: if markets go down…we will stay easy and even print more.. The question is why these people are scared of a little double-digit correction. The answer is…they know that’s all they got going for themselves and cannot afford “the wealth effect” to be harmed. That is the wealth effect for the rich…the castration of the middle class and the savers.

We repeat something we have been saying for a few years…we had better not ever get to the point where markets do not listen to the Fed and their moves. The good news…so far, the market has nothing but open ears.

Back to our regular scheduled programming in our next report.