The Fed Risks Too-Much-Much-Too-Late, For An R* Too-High-Much-Too-Soon

“I guess it shows the economy is very bad to cut it by that much, assuming that they are not just playing politics.” (Donald J. Trump)

(Source: Bloomberg, caption, and editing by the Author)

Summary:

·       Chair Powell confirms, the Key Signal, that the FOMC shoulda-woulda-coulda-didna start easing back in July.

·       Because it is behind (the Key Signals Curve), the FOMC is taking an, unnecessarily, “higher” risk, with inflation, that it may have to mitigate “sooner” than intended.

·       Dow Jones Index Inc. navigates by the Fed’s “Higher-For-Sooner” R* aka Stagflation projections.

·       Dow Jones Index Inc. is in no growth/trade war buyback mode.

·       Dow Jones Index Inc. is in domestic Friend Shoring/Keiretsu Scaling mode, reinforcing no growth/trade war buyback mode.

·       The Fed will sustain Dow Jones Index Inc.’s strategies by enhancing free cash flows.

·       Dow Jones Index Inc. will internalize the Fed’s gifts rather than transmit them to the US economy.

·       “Mullahs for Kamala” is this year’s “October Surprise”.

·       Andrew “The Governor” Bailey bales on Don Keir “Inner Temple’s” Jibbers.

Extracts

·       The June month-end Key Signals proprietary indicator shows that the Fed should now be easing monetary policy, which questions whether the intended easing of bank capital adequacy requirements will be enough to sustain the US economy until the new Presidential Cycle kicks in.

(Source: the Author, July 6^th 2024)

(Source: Reuters, caption by Frederick the Great)

·       The Fed may, “controversially”, intervene, in the Presidential Cycle, in September.

(Source: the Author, August 3^rd 2024)

(Source: FT.com)

(Source: Bloomberg, caption by the Author)

(Source: federalreserve, caption by the Author)

(Source: Bloomberg, caption by the Author)

(Source: nextgov.com, caption by the Author)

·       Mr. Market observes that insolvent Andrew Bailey’s balance sheet evades Don Keir “Inner Temple’s” goons.

·       Thanks to the “Grim Reever’s” austerity, Don Keir “Inner Temple’s” vigorish will not be vigorous enough to pay interest, on the national debt, thereby, making Andrew Bailey’s evasive balance sheet even more insolvent.

(Source: the Author, September 14^th 2024)

(Source: investing.com)

·       The “Un-Government” of the “Ungovernable Kingdom” (UK) is continuing the traditional process of rent-seeking to fund Kleptocracy and Nepotism.

·       The “Rotten Foundations” of the “Ungovernable Kingdom” (UK) underpin the “Un-Government”.

(Source: the Author, August 31^st 2024)

(Source: ft, caption by Margaret Hilda Thatcher, editing by the Author)

(Caption and editing by the Author)

(Source: Bloomberg, caption by Kenneth Wolstenholme)