The Fed & Rate Cuts

While we await the Fed's decision on what they will do next, I'll throw up a few timely remarks. It was really quite interesting this cycle to listen to much of the Fed commentary from both the bulls and the bears. Now we wait to see if the Fed cuts rates. The markets are convulsing and begging for a rate cut as I write this. So, if you believe we should listen to the market, the Fed should cut rates substantially. If you think that will cause inflation as almost every bear has been blathering about this cycle, the Fed should raise rates. Remember those days? Just a matter of weeks ago we had people stating the Fed was going to raise rates in the second half of the year. And, when the Fed lowered substantially, the bears were roaring.

Personally, I think the Fed should lower short term rates to 0.5% right now. That's right about what the market wants. Somehow I think many believe we can wish away rates near the zero bound. Well, forget it. That ship sailed years ago. And, I think we can all conclude the hyper-inflationary Weimar Republic absurdity is just about dead. We've never waivered from a deflationary outcome because the data never supported anything but.

And, I'll close by saying something even more radical. I believe the Fed could print a reasonable amount of money and we will not see inflation. That might be needed before this is all said and done. You won't hear that anywhere else. But, then most of what is reported is nonsense anyway.