That's Gonna Leave a Mark

Isaac Newton once wrote that progress in science is made by standing on the shoulders of giants;?by which he presumably meant building upon the intellectual progress made by major thinkers who have come before.? At today's press conference following the final FOMC meeting of 2023, Fed Chair Jay Powell proved once again that the setting?of monetary policy is NOT science... despite having over 400 physics-envying PhDs working for him.??

By not pushing back as Financial Conditions eased dramatically since the November 1st FOMC meeting -- and in fact energizing them to ease further at today's presser -- it seems to many that Powell might have just re-struck the price of The Fed Put to a level where any economic weakness could be construed?as an excuse to lower rates.? Let the party begin!

I've been doing this for over 40 years, and I've literally never seen the market/street/media as giddy as they currently are.? Pundits are left basically bickering with one another about what to rush out and buy with all that liquidity still sloshing around.? It's as if the 'All-Clear' signal was sounded.? Yep, Janet Yellin is large and in-charge.

Powell reminds us all that in the realm of economics and monetary policy, progress isn't made by standing on the shoulders of giants (certainly not Powell's alleged idol, 6'7'' Paul Volcker).? Progress in monetary policy?is sadly, but most assuredly, cyclical.?

As John Tuld (Jeremy Irons) said to Sam Rogers (Kevin Spacey) in the movie Margin Call, "... it's certainly no different today than it's ever been. It's all just the same thing over and over; we can't help ourselves."? Jim Grant likes to say we keep stepping on the same damn rake.??

Well, this one's gonna leave a mark.? Jay Powell;?meet?Arthur Burns.?

Ecclesiastes 1:9

? What has been will be again,

? ? ?what has been done will be done again;

? ? ?there is nothing new under the sun.