A few short years ago, it was considered tinfoil hat conspiracy theory to say that the goals of the Fed and their QE programs were to boost stock prices, real estate prices, and basically almost every other asset class.
Then slowly, years later, the MSM and others began to realize that it was the truth. You even had the likes of former Fed Governors saying so, Richard Fischer, Thomas Hoenig, Charles Plosser, and Jeremy Stein. So fast forward to today, where during the FOMC press conference, Yellen said "Fed is taking into account movements in asset prices in deciding rate hikes." Wait what?
As a reminder, in June of 2016, Yellen said that the Fed does not target stock prices, and 1 year later is saying that they do. This is not the first time, nor will it be the last, in which the Fed has lied to the American people and backtracked on previous statements. Yet no journalist in the room dared to ask her about such a statement.
But, that wasn't the most insane thing that happened during today's presser. Yellen earlier in the presser had said that weak inflation was a mystery to her and the Fed, and that they do not fully understand inflation. To put the stupidity of such a statement into perspective, the Fed, which employs thousands of Ph.D economists and dictates monetary policy, just openly admitted they literally have ZERO clue about economics.
Another small bit that caught my attention, was that as Yellen was concluding her prepared remarks, in which she talked about the wind-down of stimulus and the balance sheet and how great the economy was, her final statement in her prepared remarks was "as we stated in June, the committee would be prepared to resume reinvestment's if a material deterioration in the economic outlook were to warrant a sizable reduction in the federal funds rate." Pure comedy once again.
But no worries, stocks finished the day higher, back at fresh record highs, with a fresh new high print for the Shiller PE at 30.70, and the VIX below 10 at 9.78. All is well.