Tomorrow will be Monday, and Mish is going to blame Trump for that too. People will lose respect for Mish, who used to write a blog about macro economics before he lost his mind. What ever happened to that Mish anyway?
How does Mish visit the grand canyon and then return so completely obsessed with Trump? Did Mish not see the grand canyon? What was the point of communing with nature only to return filled with hate and bile?
The Fed doesn't matter anymore. when Bernanke breached all the Fed's actual official mandates, the Fed stopped mattering. Baby Bush figured the Fed was there to finance his wars. Obama put an unqualified woman in charge for political correctness reasons, figuring interest rate decisions were a formality and he could buy women's groups votes -- there were and are many qualified women who are smart enough to run the Fed, and they are also smart enough to steer clear of politics. And now Trump rightly looks at the Fed with the same disdain as his predecessors from both parties, the difference this time is Mish's unbridled hatred for Trump.
We all know the money center banks have no business model, and are dying. They pay and charge interest rates that have absolutely no connection to Fed Funds.
Chase Bank, before the Fed announcement, was offering 0.03% on checking deposits over $500,000. Everyone has a spare half million to subsidize JPM, right? Savings accounts pay 0.05%!! Try not to spend that all in one place. Meanwhile Chase wants 4.125% for a conforming mortgage... Nothing at Chase hinges off the irrelevant Fed.
BankAmerica, Citi and Wells Fargo offer similarly insulting interest rates, which again have no connection to Fed Funds. No connection at all. The money center banks think the Fed is irrelevant, and they act like the Fed is irrelevant too.