April 6, 2023
By Peter Bower
The Federal Reserve has us all dancing like puppets on strings. Their words, pontifications, and policy actions affect our livelihoods, determine asset values, and generally determine much of our lives. The stock market is all about the Fed. If their influence and control seem excessive to you, then you are not alone.
If the Fed and its policies help moderate the business cycle, then maybe its tremendous power might be justified. However, its track record is not particularly good. As often as not, the Fed is late in acting or accelerates and amplifies the ups and downs that are a normal part of a business cycle.
The Bull and his partners would much rather see the Federal Reserve be much more conservative in its interventions in our economy and financial lives. After all, markets have proven to be better regulators. Interest rates naturally move higher when there is increasing demand and conversely lower when demand falters – no need for intervention and micro-managing. Capitalism depends on markets, believe in them, and let them work. In the meantime, we all must deal with an intrusive Fed. We will get through this, stay steady my friends.
The Lonely Bull
