The Fed took a baby step towards the truth today, following several decades of sponsoring corporate obliteration of the middle class:
Shockingly, she never once mentioned the role of cheap capital in funding globalization, automation, and demand displacement. Nor does she believe that the economy itself is in jeopardy, instead evincing 100% confidence in the jobless consumer, backbone of all free trade agreements...
Fed rate (red) with Employment population ratio (blue):
Just to be safe though, "we should not raise interest rates anymore". Meaning the bank trade just ended today...
"Change of plans, we don't need to raise rates anymore, we're confident that what we've done so far is enough to tank the economy"
Tech has been leading for the past week. Today, the Nasdaq 100 filled the last gap above the market by opening a chasmic gap below...
Looks about right...
Likewise, Emerging Markets have been on a tear recently, deja vu of 2014...
Over in Bitcoin land a bit of a bounce...
Same with Ethereum
The overnight risk trade is back, since Yellen just eliminated all support for USDJPY:
Twenty years ago the Asian Financial crisis was caused by slowing Asian economies and reduced interest rates, leading to hot money outflow...
Expensive electric cars will never reduce the carbon footprint. There's a better way, it's called "maintain status quo"...
