RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:It wouldn't put Quinte, I think you are agreeing with me regarding lack of collusion with Trump but that is a bit off topic and isn't the point.
Consider this: the Fed's mandate are categorized into 4 duties, but the one relevant to this discussion is - maintaining financial stability and containing systemic risk. That definition is vague as to what they can and cannot do. But given they seem to have absolute power, they can do anything they want that is deemed necessary to intervene in the markets.
So we have been assuming, based on observation, that they may be intervening (meddling) into the markets such as shorting oil when relevant market reports are bullish and increasing the dollar as oil rises, coinciding with the advent of inflation but a departure from historical relationships.
So let's agree and say that is within their mandate which enables them to contain oil prices and therefore reduce inflationary pressures within the US. But what about the inplications?
Free markets rely on timely data and reports for price discovery just to name a few of the main ones. So if me, you, the market is investing based on the info we have with companies that have the best chances for share price appreciation but the Fed undermines the market - that works contrary to free markets theory and we end up with loses or gains that are limited.
At minimum, should the Fed not then be transparent as to what actions they are taking if they have unlimited power and can control/contain markets? Is that how a free market economy is to work or are we getting away from the concept that free markets are best at correcting the market imbalances, excesses, shortfalls and finding equilibreum?
If you look at the Fed's monetary policy actions since at least Greenspan, some, perhaps rightly so have said this can only end badly.
Good luck to all investors!