Fed Insight & Commentary

From The Distilled Perspective of Patrick T Bulger, Capital Management & Analytics

•    First 
The Fed decision is based on votes from voting members. 
It is Not, "What the Chairperson will do".

•    Second,
It is on raising or lowering of the Fed Funds Rate, which is an overnight institutional rate.

•    Third,
The mandate of 'Price Stability", from Congress, is not a precise definition.  It is intentionally loosely defined and left open to interpretation.

With all that said, The following is my opinion on how I see today’s condition.

•    The other mandate of jobs:
Has been moderately reported enough to be a non-factor.  

Yes, if you’ve read my blog, I've clarified my point on jobs.
Having the Fed in charge of jobs is a bit of a mismatch in my view.
It also, in many ways opposes price stability, again, in my view.

•    Back to 'Price Stability":
My feeling on cuts having been the feeding of speculation is well documented,
Noting the "Bazooka" of prior stimulus,
The punch bowl has not been taken away.

•    Currency Matters:
I feel that a pause or cut would not be currency favorable to our "Price Stability".
That said, my view on the Fed is that they should vote to hike.

•    Spending Accountability Since 2008:
The distraction that most do not account for is Congressional Spending.
The part that's supposed to be "Responsible" and for over a decade, I feel it has not been so.

•    Conclusion:
Lumping it all on the Fed is perhaps behind in the true accounting for our current situation.  

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Thanks for your time.
Best, 
PTB