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A “Numble” Fed: What To Do When Random Flip-Flopping And Ambiguity Is The Strategy

I would like to invent a new portmanteau word “Numble” to describe how central banks now operate these days: it is a combination of the Fed’s new word-smithing twist “humble and nimble”, since “transitory” is so 2021.

The term perfectly describes the increasingly random (you can put lipstick on it and call it “nimble”) policy decisions of the Fed which are anything but humble. The markets are being slowly conditioned to become numb to their stumbles, albeit in a volatile way. But like a rogue trader gone amuck, “data dependent” “nimble” central banks have become bulls in a china shop, armed with shaky economic theories and prognostications that at best are laughably silly and at worst seriously damaging to the long term financial health of the countries and economies they govern.

The full note on this important topic can be downloaded at this link: LTA Thinking – A “Numble” Fed – What To Do When Random Flip-Flopping And Ambiguity Is The Strategy