Bubbles B. Goode: Musical Tribute to the Fed

-edited

A few weeks ago I created a video anticipating the moment Powell would embrace rate-cutting bubbles as standard policy.

The bubble-blowing admission has arrived.

On Tuesday, Fed Chair Jerome Powell announced he was Ready to Cut Rates to "Effective Lower Bound" via "Conventional" Policy.

Unconventional the New Conventional

The unconventional is now the new conventional. Powell stated it's "time to retire the term 'unconventional' when referring to tools that were used in the crisis."

"The next time policy rates hit the ELB—and there will be a next time—it will not be a surprise," said Powell.

ELB stands for Effective Lower Bound. With that, Powell implied that interest rates will return to zero.

Open Letter to the Fed

In an open letter to the Fed, I asked Powell a set of questions on inflation expectations, demographics, the Phillips Curve, and the CPI, all areas in which the Fed has made repeated errors.

Hello Jerome Powell, We Have Questions

My questions, sent directly to the Fed before Powell's latest announcement, went unanswered.

Hello Jerome Powell, I ask again, instead of failed bubble-blowing tactics, how about some answers?

Mike "Mish" Shedlock

Comments (17)
No. 1-17
ksdude
ksdude

About 1000 points up in the past 3 days. Oz is alive and well.

thimk
thimk

funny stuff ! skillfully parodied

Cocoa
Cocoa

AMAZING...and that is not an easy song to keep up with! I am exhausted.

Jackula
Jackula

Lol! Helicopter money is on its way!

truthseeker
truthseeker

Do I get a pardon? I thoroughly enjoyed it!