17 Comments
User's avatar
The Rational Walk's avatar

In the WSJ this weekend, there’s a long article by Nick Timiraos that claims that the Fed has a mandate for “low inflation” when the statutory language is price stability.

“ Two of the worst eco-nomic crises of the last cen­tury—the Great De­pres-sion of the 1930s and the Great In­fla­tion of the 1970s—both re­sulted in sub­stan­tial changes to the Fed’s op­er­at-ing pro­ce­dures. Con­gres-sional De­moc­rats passed leg­is­la­tion in 1977 and 1978 set­ting forth the Fed’s present-day man­date to main­tain low in­fla­tion and max­i­mum em­ploy­ment.”

https://www.wsj.com/articles/can-central-banks-maintain-their-autonomy-11661525673?st=oq9187fy5uh2ygj&reflink=article_copyURL_share

Nowhere is 2% inflation authorized by congress. Hard to understand why the media parrots this line other than continued access to the “unnamed sources” at the Fed that are the lifeblood of covering the Fed beat. Frustrating.

Expand full comment
Rudy Havenstein's avatar

Thanks. I will point this out to Nick

Expand full comment
The Rational Walk's avatar

“ We could not get inflation up to 2%,” said Fed governor Christopher Waller. “This sounds crazy. I used to always joke, ‘Go get the guys from Argentina. They know how to do it.’”

It’s all a joke to these guys, isn’t it? They don’t bear the consequences of their failure.

Expand full comment
Andy Fately's avatar

Fair point

Expand full comment
Colin Reilly's avatar

Can We request roasts and evidence of douchery on other cnbc scum? Fast money clowns

Expand full comment
Spek's avatar

Great stuff once again Senor Rudy.

Expand full comment
Michael Turek's avatar

At some point in time, the Government monster sat alone, now the banks, Media, film industry, Universities, Tech Firms and others have joined in. It is the biggest Monster in world history

Expand full comment
INTJ Architect's avatar

Congratulations on winning the Heisman.

Expand full comment
Andy Fately's avatar

While I am in complete agreement regarding the Fed's focus on raising inflation being asinine and questioned it at the time and since, I think to be fair to the Fed regarding QT, Joseph Wang has written a bit about the mechanics of the Fed's balance sheet and that they actually are staying true to their word, but because of settlement delays and TIPS accretion, it doesn't appear that way. as we progress through the year and the last settlement delays of MBS end, I expect we are going to see the numbers decline more rapidly. Of course, what this means is that the peak was higher than we all thought.

Otherwise, I love the way you hoist each of these criminals on their own petard

keep it up

Expand full comment
Rudy Havenstein's avatar

Wang (who I like) tries to explain how a watch works. I look at the time.

Expand full comment
RD's avatar

I did not know this about Gartman

Expand full comment
Mike's avatar

The whole sordid lot of them are intermarried. Media, members of Congress (Sens & Reps), lobbyists…in the immortal words of Lt. Col. Frank Slade, we should take a flamethrower to this place.

Expand full comment
Dennis's avatar

Award winning Rudy Havestein,

Expand full comment
David allard's avatar

Kickass newsletter as usual.

A sort of male Marie Antoinette figure, that is so good :)

Expand full comment
Colin Reilly's avatar

No one does it better than Rudy

Expand full comment
Bitcoin Fortress's avatar

👍👍👍

Expand full comment
Jimbob's avatar

Richard Pettigrew should be required reading in high schools. Mad respect for your quoting him.

Expand full comment