The market is literally bullying the @federalreserve – i.e., loosening financial conditions w/ "core" CPI at 2x the @federalreserve's target. This, as @elerianm correctly stated, is what happens when you have a communication problem at the Fed (as we currently do). This is (very)…
— Gordon Johnson (@GordonJohnson19) December 21, 2023
Perhaps. But that’s: (a) not at all their mandate, and (b) will bring MORE back breaking inflation for the masses. Their reason for existing is to keep prices steady. This will push prices higher. This behavior is corrosive to society writ large. pic.twitter.com/fd5VppeIgB
— Gordon Johnson (@GordonJohnson19) December 21, 2023
Correct, but @SecYellen is doing this by design (i.e., it pushes stocks up, which is good for @POTUS into an election yr) – see Oct. 31st QRA. And, the Fed could counter it by immediately increasing QT to offset the RRP drain. But, of course, they're not. Thus, respectively, when…
— Gordon Johnson (@GordonJohnson19) December 21, 2023