The Celeri Journal #74: End of an Era

Written by Michael

On May 14, 2020

Global Markets Recap

History is happening before our eyes. In no uncertain terms, Fed chair Jay Powell declared the world’s largest central bank at the end of the road – no negative rates “for now”

And the torch is officially being passed after decades from monetary policy to fiscal policy amid a “highly uncertain” outlook.

Mr. Powell: “Additional fiscal support could be costly, but worth it if it helps avoid long-term economic damage & leaves us with a stronger recovery. This trade-off is one for our elected representatives, who wield powers of taxation & spending.”

As the memory & merits of predecessors Volcker, Greenspan, Yellen & Bernanke et al fade in the rearview mirror.

“……for our elected representatives……”

A House divided is a challenging place to do business & that’s where we stand. Maybe the “world’s greatest deliberative body” – the Senate – will summon the courage to make things happen. But I dunno: there seems more talk these days about deep-state inquiries than fixing the giant gaping whole coronavirus has left us. Bankers talk in hushed tones & you have to listen very carefully & play it back.

“Fiscal support could be costly….this trade-off is one for our elected officials.”

Never before have I heard the Fed punt to Congress before. On to need Plan B; any questions.

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