{"id":13024,"date":"2016-03-17T05:33:59","date_gmt":"2016-03-17T09:33:59","guid":{"rendered":"http:\/\/goldstocksforex.com\/?p=13024"},"modified":"2016-03-17T05:33:59","modified_gmt":"2016-03-17T09:33:59","slug":"give-up-the-idea-that-the-fed-can-do-what-it-wants","status":"publish","type":"post","link":"https:\/\/thepatientinvestor.com\/index.php\/2016\/03\/17\/give-up-the-idea-that-the-fed-can-do-what-it-wants\/","title":{"rendered":"Give up the idea that the Fed can do what it wants"},"content":{"rendered":"<p>Please give up the idea that the Fed can do what it wants. It looks like it can in the short-run, but in the long run markets do what they want, and the Fed has to respond, rather than lead.<\/p>\n<p>~ <a href=\"http:\/\/seekingalpha.com\/article\/3036306-the-bond-market-tells-the-fed-what-to-do-not-vice-versa\" target=\"_blank\">David Merkel<\/a><\/p>\n<blockquote class=\"twitter-tweet\" lang=\"en\"><p><a href=\"http:\/\/t.co\/YN1kDJUKmL\">pic.twitter.com\/YN1kDJUKmL<\/a><\/p>\n<blockquote class=\"twitter-tweet\" lang=\"en\"><p>SchulzMuseum (@SchulzMuseum) <a href=\"https:\/\/twitter.com\/SchulzMuseum\/status\/516675167536553984\">September 29, 2014<\/a><\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>Please give up the idea that the Fed can do what it wants. It looks like it can in the short-run, but in the long run markets do what they want, and the Fed has to respond, rather than lead. ~ David Merkel pic.twitter.com\/YN1kDJUKmL SchulzMuseum (@SchulzMuseum) September 29, 2014<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"quote","meta":{"_mo_disable_npp":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[57],"tags":[],"class_list":["post-13024","post","type-post","status-publish","format-quote","hentry","category-stock-markets","post_format-post-format-quote"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Give up the idea that the Fed can do what it wants - the patient investor<\/title>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Give up the idea that the Fed can do what it wants - the patient investor\" \/>\n<meta property=\"og:description\" content=\"Please give up the idea that the Fed can do what it wants. It looks like it can in the short-run, but in the long run markets do what they want, and the Fed has to respond, rather than lead. ~ David Merkel pic.twitter.com\/YN1kDJUKmL SchulzMuseum (@SchulzMuseum) September 29, 2014\" \/>\n<meta property=\"og:url\" content=\"https:\/\/thepatientinvestor.com\/index.php\/2016\/03\/17\/give-up-the-idea-that-the-fed-can-do-what-it-wants\/\" \/>\n<meta property=\"og:site_name\" content=\"the patient investor\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/profile.php?id=61572934660810\" \/>\n<meta property=\"article:published_time\" content=\"2016-03-17T09:33:59+00:00\" \/>\n<meta name=\"author\" content=\"ColinTwiggs\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"ColinTwiggs\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2016\/03\/17\/give-up-the-idea-that-the-fed-can-do-what-it-wants\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2016\/03\/17\/give-up-the-idea-that-the-fed-can-do-what-it-wants\/\"},\"author\":{\"name\":\"ColinTwiggs\",\"@id\":\"https:\/\/thepatientinvestor.com\/#\/schema\/person\/cb072791ac83e8bae585007c133d54a5\"},\"headline\":\"Give up the idea that the Fed can do what it wants\",\"datePublished\":\"2016-03-17T09:33:59+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2016\/03\/17\/give-up-the-idea-that-the-fed-can-do-what-it-wants\/\"},\"wordCount\":62,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/thepatientinvestor.com\/#organization\"},\"articleSection\":[\"Stock Markets\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/thepatientinvestor.com\/index.php\/2016\/03\/17\/give-up-the-idea-that-the-fed-can-do-what-it-wants\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2016\/03\/17\/give-up-the-idea-that-the-fed-can-do-what-it-wants\/\",\"url\":\"https:\/\/thepatientinvestor.com\/index.php\/2016\/03\/17\/give-up-the-idea-that-the-fed-can-do-what-it-wants\/\",\"name\":\"Give up the idea that the Fed can do what it wants - the patient investor\",\"isPartOf\":{\"@id\":\"https:\/\/thepatientinvestor.com\/#website\"},\"datePublished\":\"2016-03-17T09:33:59+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2016\/03\/17\/give-up-the-idea-that-the-fed-can-do-what-it-wants\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/thepatientinvestor.com\/index.php\/2016\/03\/17\/give-up-the-idea-that-the-fed-can-do-what-it-wants\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/thepatientinvestor.com\/index.php\/2016\/03\/17\/give-up-the-idea-that-the-fed-can-do-what-it-wants\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/thepatientinvestor.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Give up the idea that the Fed can do what it wants\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/thepatientinvestor.com\/#website\",\"url\":\"https:\/\/thepatientinvestor.com\/\",\"name\":\"The Patient Investor\",\"description\":\"Smart. 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There is no change to the rate of Fed balance sheet runoff (QT). FOMC dot plot projections reflect a mildly dovish long-run monetary policy, but not sufficient to antagonize the bond market. Chair Jerome\u2026","rel":"","context":"In &quot;Banks &amp; Interest Rates&quot;","block_context":{"text":"Banks &amp; Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"FOMC Projections","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2025\/2025-09-17-fomc.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":25928,"url":"https:\/\/thepatientinvestor.com\/index.php\/2021\/05\/21\/rrp-a-fed-taper-by-stealth\/","url_meta":{"origin":13024,"position":1},"title":"RRP: A Fed taper by stealth","author":"Colin Twiggs","date":"May 21, 2021","format":false,"excerpt":"We will try to keep the jargon to a minimum, so that we do not get lost in the maze of financial markets. On May 20th, Tyler Durden published an article headed \"Fed Alert: Overnight Reverse Repo Usage Soars Above Covid Crisis Highs\" What is Overnight Reverse Repo? Overnight Reverse\u2026","rel":"","context":"In &quot;Banks &amp; Interest Rates&quot;","block_context":{"text":"Banks &amp; Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":19882,"url":"https:\/\/thepatientinvestor.com\/index.php\/2020\/03\/07\/global-financial-markets-are-sinking\/","url_meta":{"origin":13024,"position":2},"title":"Global financial markets are sinking","author":"Colin Twiggs","date":"March 7, 2020","format":false,"excerpt":"The current crisis is not caused by the coronavirus. Global financial markets have been at sea in a leaky boat for some time. Central bankers managed to plug the leaks, so far, but it is questionable whether they will be able to weather the approaching COVID-19 storm without sustaining long-term\u2026","rel":"","context":"In &quot;Banks &amp; Interest Rates&quot;","block_context":{"text":"Banks &amp; Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":40923,"url":"https:\/\/thepatientinvestor.com\/index.php\/2023\/02\/18\/surviving-an-irrational-market\/","url_meta":{"origin":13024,"position":3},"title":"Surviving an Irrational Market","author":"Colin Twiggs","date":"February 18, 2023","format":false,"excerpt":"\"There is nothing so disastrous as a rational investment policy in an irrational world.\" ~ John Maynard Keynes The Fed is hiking interest rates, the yield curve has inverted, leading indicators are at recession levels, and yet stocks are rallying. The S&P 500 penetrated its descending trendline and is testing\u2026","rel":"","context":"In &quot;Banks &amp; Interest Rates&quot;","block_context":{"text":"Banks &amp; Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"S&P 500","src":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2023\/2023-02-17-spx.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2023\/2023-02-17-spx.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2023\/2023-02-17-spx.png?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":27505,"url":"https:\/\/thepatientinvestor.com\/index.php\/2021\/08\/21\/the-way-the-fed-works\/","url_meta":{"origin":13024,"position":4},"title":"The Fed and Washington: The way it works","author":"Colin Twiggs","date":"August 21, 2021","format":false,"excerpt":"It's not what the Fed says, that matters. It's what they do. Long-term Treasury Yields If you wonder why long-term rates failed to take off despite Fed officials blitzing the airwaves with taper talk over the past week: The Fed has been quietly increasing its holdings of long-term Treasuries, ensuring\u2026","rel":"","context":"In &quot;Banks &amp; Interest Rates&quot;","block_context":{"text":"Banks &amp; Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":19334,"url":"https:\/\/thepatientinvestor.com\/index.php\/2019\/10\/26\/dont-fight-the-fed\/","url_meta":{"origin":13024,"position":5},"title":"Don&#8217;t fight the Fed","author":"Colin Twiggs","date":"October 26, 2019","format":false,"excerpt":"The Fed is again expanding its balance sheet in response to the recent interest rate spike in repo markets. The effect is the same as QE: the Fed is creating new money (reserve balances) and pumping this into financial markets. Why is this happening? The US government is issuing record\u2026","rel":"","context":"In &quot;Banks &amp; Interest Rates&quot;","block_context":{"text":"Banks &amp; Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/13024","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/comments?post=13024"}],"version-history":[{"count":0,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/13024\/revisions"}],"wp:attachment":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/media?parent=13024"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/categories?post=13024"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/tags?post=13024"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}