US Federal Reserve

As is the case every month, moments ago Jeff Gundlach started his periodic webcast to DoubleLine investors, this time focusing on asset allocation.

Among his notable remarks so far is that it increasingly looks like the Fed hike "increasingly likely looks like a one and done scenario" and that the Bond market keeps saying at best just one Fed hike this year.

Come to think of it, looking at the S&P, so do stocks.

Moments ago the Fed's RRP operation totaled only $18.7 bln, the lowest level of participation since December 19, 2013 when the maximum bid per counterparty was only $1 bln compared to $30 bid since September 2014. In other words, program participants took only $18.7 billion worth of Treasury securities from the Fed, just months after the Fed expanded the reverse repo program to account for potentially hundreds of billions in reverse repo demand after the Fed's 25 bps rate hike.

With every passing day, the Fed is slowly but surely losing the game.

Only it is not just former (and in some cases current) Fed presidents admitting central banks are increasingly powerless to boost the global economy, even if they still have sway over capital markets. What is far more insidious to the Fed's waning credibility is when former economists affiliated with the Fed start repeating mantras that until recently were only a prominent feature in the so-called fringe media.

We reported in 2010 that the American Dream has moved abroad.

We provided additional details in 2013 and 2014.

Today, a very powerful insider - the President of the most powerful Fed bank, the Federal Reserve Bank of New York, Bill Dudley - confirmed that the American Dream has left the house:

Just after today's emergency meeting at the Fed, which has presumably concluded by now, as we first reported last night Obama was set to meet with the "independent" Federal Reserve chair. Moments ago the White House explained this was to allow the two to "exchange notes" and talk about the state of the US economy. Most crucially, Obama said he "was pleased with the way Yellen had fulfilled her job."

This is what the White House said they would discuss: