Stock investors don’t believe Powell because the Fed lost most of its credibility in recent years by promising it could do quantitative tightening on autopilot in its long-awaited and feared balance-sheet unwind, which crashed stocks back in 2018. Next it slammed the brakes on QT in a Fed faceplant because it had also crushed bank reserves, which the Fed, more than any entity on the earth, is supposed to understand and manage.

The post The Fed Is All that Matters … Until it Doesn’t and Everyone Just Ignores it appeared first on The Great Recession Blog.