The Fed Is Openly Cheering The Stock Market Plunge Following Jackson Hole

The Fed Is Openly Cheering The Stock Market Plunge Following Jackson Hole

Authored by Mike Shedlock via MishTalk.com,

After actively promoting bubbles in housing and the stock market for years, the Fed is now rooting for a price crash…

Neel Kashkari ‘Happy’ to See the Stock Market’s Reaction to Jackson Hole

Bloomberg reports Neel Kashkari ‘Happy’ to See the Stock Market’s Reaction to Jackson Hole

“I was actually happy to see how Chair Powell’s Jackson hole speech was received,” Kashkari said in an interview with Bloomberg’s Odd Lots podcast on Monday, reflecting on the steep drop after Powell spoke. “People now understand the seriousness of our commitment to getting inflation back down to 2%.”

“I certainly was not excited to see the stock market rallying after our last Federal Open Market Committee meeting,” he said. “Because I know how committed we all are to getting inflation down. And I somehow think the markets were misunderstanding that.”

“One of the biggest mistakes they made in the 1970s at the Fed is they thought that inflation was on its way down. The economy was weakening. And then they backed off and then inflation flared back up again before they had finally quashed it,” Kashkari said. “We can’t repeat that mistake.”

Fed’s Kashkari has just said: I am delighted by the market’s reaction to the Jackson Hole.

The reaction: pic.twitter.com/nc0Z20DgfX

— unusual_whales (@unusual_whales) August 29, 2022 Actively Promoting Bubbles

The Fed actively promoted a housing bubble to bail out banks following the DoCom crash. Of course, the DotCom bubble was openly embraced by Greenspan as a productivity miracle.

Not understanding bubbles and crashes, the Fed promoted the “Everything Bubble” as it is now called in response

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