If the goings-on yesterday with the Fed don't convince each and every one of us how irresponsible and asinine our Federal Reserve truly is, I am not sure anything ever will.
We had Fed boss Janet Yellen start speaking at 10 a.m. ET and, based on her comments, our markets and those across the pond correctly concluded that a September rate hike was off the table, putting paid to that uncertainty that's had the markets in neutral for the last five or six weeks.
Soon after she was done yammering, Vice Chair Stanley Fischer comes on and puts the September rate hike right back on the table by saying he believes the Fed will raise two more times in 2016.
We all know markets hate uncertainty. The Nasdaq, which was up 40 points soon after Yellen was done, dropped like a rock and was down almost 20 points at one point. Similar action was seen in the Dow and the S&P.
Now maybe everyone will realize why I often call our Federal Reserve the worst central bank in the world, bar none. It holds the most clout globally but is often the most cavalier about what it says, with the various Fed presidents often contradicting each other in their haste to grab the headlines and thus be considered the ones with the ability to move markets.
Why do they do it, you ask? Simple; they are only focused on their post-Fed careers and spend most of their dreaming of when they are done with their "service" and they will be moving on to those fat paychecks as board members, consultants, professional speakers or on Wall Street. They seem to intentionally make their off-the-cuff remarks to shake the global markets because the effects are visible for the world also immediately. They can't target the housing market because no one sees the immediate impact on housing prices like they do in the equity markets. Therefore, they target only the stock markets despite their protestations otherwise. Think about it for a second or three for yourself.
The Fed has never been able to avert a single crisis we have been through in the last several decades, be it the crash of 1987, the dot-com bubble and subsequent crash, and of course the Great Recession of 2008-09. The adage "Empty vessels make the most noise" holds especially true as far as our central bankers are concerned.
A lot of stock market observers lament the point that millions upon millions of young people, including millennials, Gen X or Y or Z, want nothing to do with the stock markets. The blame lies entirely on the Federal Reserve, which from the days of "Easy" Alan Greenspan to Bemused Ben Bernanke to now Grandma Janet Yellen has made the volatility in our stock markets unbearable for no reason, even for professionals. Is it any wonder that the layperson wants nothing to do with the markets if professionals can barely handle the insanity that these asinine Fed heads intentionally inject into the markets for no reason but their own selfish material desires? Talk about abusing the privilege, no?
Next week will bring us more of these idiot Fed presidents, with Eric Rosengren and Neel Kashkari on Wednesday, Loretta Mester on Thursday and Jeff Lacker on Friday.
On the economic data front, nothing is more important than the nonfarms payroll number for August on Friday, given the fact it will be the last one out before the FOMC meeting in the last week of September.
Internationally, besides the usual reams of data from across the pond and from Asia, my eyes will be on China manufacturing PMI, due out Wednesday overnight.
You would think we would be long done with earnings, but we have a few nice and juicy ones coming up in tech land beginning with Palo Alto Networks (PANW) on Tuesday after the close, Infoblox (BLOX) and Salesforce (CRM) after the closing bell on Wednesday and finally Broadcom (AVGO) and Ambarella (AMBA) post-close on Thursday.
With that, I wish each and every one of you a safe and joyful weekend with your loved ones!