{"id":47146,"date":"2019-07-09T14:02:14","date_gmt":"2019-07-09T19:02:14","guid":{"rendered":"https:\/\/olduvai.ca\/?p=47146"},"modified":"2019-07-09T14:05:57","modified_gmt":"2019-07-09T19:05:57","slug":"powells-verschlimmbessern-fed","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=47146","title":{"rendered":"Powell&#8217;s Verschlimmbessern Fed"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/www.zerohedge.com\/news\/2019-07-09\/powells-verschlimmbessern-fed\">Powell&#8217;s Verschlimmbessern Fed<\/a><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">According to&nbsp;<a href=\"https:\/\/en.wiktionary.org\/wiki\/verschlimmbessern\">wiki<\/a>, verschlimmbessern is&nbsp;<strong>to make something worse in an honest but failed attempt to make it better<\/strong>.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Other working titles for today\u2019s T-Report included<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>So Much Communication, So Little Information<\/strong><\/li><li><strong>The Over-Engineered and Micro-Managed Market<\/strong><\/li><li><strong>The Catch-22 of Fed Policy<\/strong><\/li><li><strong>Why do Today what you Can do Next Meeting?<\/strong><\/li><li><strong>I\u2019ll Gladly Cut Next Meeting for a Market Move Today<\/strong><\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The titles all convey the same sentiment \u2013 that the Fed has gone overboard in terms of trying to manage expectations and is distorting markets and creating confusion.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>If You Are Going to Buy Insurance, Why Not Buy it Now?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If the Fed\u2019s rate cut is supposed to be an \u201cinsurance cut\u201d, why not do that back in June?&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>What was the thought process?<\/strong>\u00a0 Yeah, I live in a flood plain, yeah, it\u2019s the rainy season, yeah, the river is running high, but I was kind of hoping to lie on the couch and watch the game.\u00a0 Maybe I\u2019ll buy that flood insurance next month?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><em>If we \u2018needed\u2019 an insurance cut, why didn\u2019t we get it?&nbsp; Because it wasn\u2019t needed?&nbsp; But if it wasn\u2019t needed in June, why after some good data, is it needed in July?&nbsp;<\/em><\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">After a Decade of Failing on Inflation, Let\u2019s Wait 1 Month and then Panic<\/h3>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>Let\u2019s&nbsp;<strong>ignore&nbsp;<\/strong>for a moment that many people question how relevant the common inflation measures are to today\u2019s economy.<\/p><p>Let\u2019s&nbsp;<strong>ignore&nbsp;<\/strong>for a moment the fact that the Fed\u2019s favorite measure of inflation barely beats the alleged 2% target.&nbsp; The PCE didn\u2019t even average 2% during the 8 years before the financial crisis, let after the financial crisis.<\/p><p>Let\u2019s&nbsp;<strong>ignore&nbsp;<\/strong>for a moment how we came up with 2% as being some optimal level of inflation.<\/p><p>Let\u2019s&nbsp;<strong>ignore&nbsp;<\/strong>for a moment the chart Academy sent around yesterday, highlighting that for all the academic\/wonkish discussions on inflation expectations, they are pretty much just correlated to the price of oil.<\/p><\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Powell&#8217;s Verschlimmbessern Fed According to&nbsp;wiki, verschlimmbessern is&nbsp;to make something worse in an honest but failed attempt to make it better.&nbsp; Other working titles for today\u2019s T-Report included So Much Communication, So Little Information The Over-Engineered and Micro-Managed Market The Catch-22 of Fed Policy Why do Today what you Can do Next Meeting? I\u2019ll Gladly Cut [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[26225,534,26226,3650,4318],"class_list":["post-47146","post","type-post","status-publish","format-standard","hentry","category-economics","tag-academy-securities","tag-monetary-policy","tag-peter-tchir","tag-us-federal-reserve","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/47146","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=47146"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/47146\/revisions"}],"predecessor-version":[{"id":47147,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/47146\/revisions\/47147"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=47146"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=47146"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=47146"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}