I’ve spent the last few weeks surrounded by teenagers. Man do they talk a lot. The nonstop nonsensical chatter called to my remembrance many, many class periods I spent sitting in the hallway as a consequence to my out-of-control jibber jabber. Several report cards (back when they were hand-written) commented that I was “loquacious. talkative. disruptive. effusively verbose”. That must have been exhausting for everyone within earshot. And for that, i profusely apologize.
Perhaps that’s why I appreciated New-Fed-Chair Kevin Warsh laying down his Code of Silence this week. After reading the FOMC Policy Statement and answering a question or two, Mr. Warsh effectively said that we’ll only hear from him when he has something important to say. Succinctly, he conveyed that there won’t be a Q&A after every meeting and that the markets are expected to interpret their own data. It’s not the Fed’s responsibility to decipher how investors should allocate funds; it’s the Fed’s job to maintain price stability and maximum employment.
Like a teacher telling the class that they should study because the answers to the test will not be spoon-fed in class, the markets (those who were paying attention) gave out a deflated groan and interest rates took a tiny step upward. IF Hormuz opens for business within the next 30 days as agreed upon in the latest MoU, I expect—nay I plead for—some reprieve.
