WTF Headline Of The Day: Fed "Reluctant" To Manipulate Stocks, Bullard Says

Speaking on Bloomberg Radio to Kathleen Hays this morning, outspoken St.Louis Fed chair James Bullard dropped two somewhat shocking reality-check tape-bombs... that we are sure will quickly be rescinded and translated for the hard-of-understanding...

First, Bullard was aksed about concerns over a US economic recession. He began with the 'standard' response of any establishment type:

"I don't see any recession on the horizon."

But then, something got hold of him and he uttered the following omnipotence-threatening phrase...

"But you never know."

But, we thought you are supposed to know? Besides, aren't you and your cohorts responsible for pulling the strings of the centrally planned state?

While notable, howevever, it was his second 'oops' that shocked many.

Reflecting on the impact of unwinding The Fed's balance sheet, noting that it's effect was "almost nothing," Bullard decided to add the following:

"The Fed has been reluctant to target equity prices."

Which is a very different phrase from the usual utter denial from Janet Yellen or anyone else.

Did Bullard just admit that The Fed does 'tinker' with stocks... but reluctantly? Is this confirmation that like SNB, PBOC, and BOJ, The Fed manipulates the US stock market?

We're sure we'll never know, as if his comments are picked up by any other than the alternative media, it will be rapidly translated into doublespeak that confirms it means nothing.

*  *  *

And finally, as a bonus, Bullard admitted that "The Fed's inflation and growth 'misses' add up... and undercut credibility."

Which raises a simple question - what credibility?


Ignatius Wed, 08/09/2017 - 13:53 Permalink

Largest, or one of the largest, trading desks in the world, so I've heard.That came from PCR, but what does he know?So, yeah, let's just go with "WTF?"

Manthong Stuck on Zero Wed, 08/09/2017 - 14:38 Permalink

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 yes… and a 17 year old male is reluctant to have sex

In reply to by Stuck on Zero

philipat fx Wed, 08/09/2017 - 20:02 Permalink

In these dystopian times. it needs to be stated clearly that CB's should NOT be Hedge Funds with their peoples' (and printed from thin air) money. There is absolutely NO justification, in terms of their official objectives, for CB's to buy equities other than to prop (no pun intended) up a failing system of their own creation. Oh what a tangled web they weave.....

In reply to by fx

Peacefulwarrior Ignatius Wed, 08/09/2017 - 14:36 Permalink

This single act of reduced portion in and of itself can be interpreted as Inflationary... This is true! BUT the overall "TREND" is Deflationary in it's nature as real Growth is "not" accompanying the exotic Central Bank measures to produce a  real economic growth effect in the general economy. Thus the distortion and lack of money coming to us in the general economy by banks/lenders etc. This is Deflationary my friend

In reply to by Ignatius

Peacefulwarrior Ignatius Wed, 08/09/2017 - 14:50 Permalink

What you get is some Distortion. Inflated asset prices, some inflationary impact on purchasing power of the dollar is what "you're referring" to trying to be offset by putting more air and less chips in the bags (going back to your example). General trend is all Deflationary though. FED is in worst situation possible, Normalizing would mean servicing higher debt payments in a contracting economy even though they need to do so to save pensions. This is DEFLATIONARY...

In reply to by Ignatius

GUS100CORRINA auricle Wed, 08/09/2017 - 14:13 Permalink

WTF Headline Of The Day: Fed "Reluctant" To Manipulate Stocks, Bullard SaysMy response: WHAT A HYPOCRITE!!!! THIS GUY IS A LIAR WHO GETS HIS LIES FROM THE PIT OF HELL.The FED has been manipulating stocks for the last 10+ years. SOMEONE SHOULD WATERBOARD TORTURE THIS GUY TO GET THE TRUTH!!!!====In a society where all lies, all deceptions, all corruptions are accepted, that society will lose control of everything. Chaos will begin to take over, and the only way that chaos will be slowed down will be when dictatorial control, or maybe even a police state is formed, where thought and behavior is fixed, and anybody out of bounds is punished. Eventually, the chaos has to be controlled. We’re not headed toward socialism; we could very well be headed toward a dictatorship in our world. Is this hard to grasp?

In reply to by auricle

Creative_Destruct froze25 (not verified) Wed, 08/09/2017 - 14:07 Permalink

As a matter of fact, massive excess liquidity enables execss speculation and asset inflation. This is indirect "manipulation" by the Central Banks.Direct manipulation of stocks, in light of this willingness to perform direct MASSIVE moneypumping and financial repression (ZIRP & NIRP) is only a short step away...Reluctance?? NOT much.Add Central Bankers to the Lawyer & Politician joke: How can you tell if a Central Banker is lying? His lips are moving.

In reply to by froze25 (not verified)

Clowns on Acid lester1 Wed, 08/09/2017 - 14:43 Permalink

Lester - It ain't just the 1% that the Fed is protecting...its the pension compnies and Insurance companies. They are way loaded with equiites as they cannot get any yileld from bonds. The overweight equiites for these guys began in 2012...and has not stopped.Even Jamie Dimon says that he would not buy bonds here. Someone should havce asked Jamie about the level of the VIX and if he woiuld buy equities at this level ...y'know...because Jamie says that he is a real Patriot. I guess that means that "Patriots" get bailed out with printed Fed fiat when collapse comes because of over leverage and CDS Whales.If QE never happened, and it should not have (TARP was necessary) Jamie would have been done to $10MM in his personal account not the $ 300MM today. But of course thats because he is a Patriot.

In reply to by lester1

khakuda Wed, 08/09/2017 - 13:54 Permalink

They have no upside target, they let them go to the moon. They do however work to prevent downside. Greenspan has stated it over and over.