Moments ago the Fed released its July Monetary Policy Report which forms the basis of Janet Yellen's testimony to Congress next week, and while it does not traditionally discuss monetary policy it does provide a snapshot of the Fed's take of the economy and capital markets at any given moment. Here are some of the highlights courtesy of BBG:
Authored by Mike Shedlock via MishTalk.com,
Time and time again, the Fed sows seeds of the next financial crisis in actions it takes to mitigate the previous financial crisis that it caused.
Have we reached that point yet?
The Guardian reports Central Banks Raise Alarm Over New Crash After Steep Rise in Lending.
After a poor March jobs report, followed by an April scorcher, then another debacle in May, the June payrolls report due at 8:30am will be... very much irrelevant, because as Citi pointed out earlier, the Fed is now data-independent and will keep hiking until financial conditions finally tighten (read: stocks drop). In other words, with the Fed on autopilot, feel free to skip this one - it hardly matters. For what it's worth, here are the consensus expectations for tomorrow's report:
It is becoming increasingly apparent that the Fed, now data-independent, has just one mandate: keep hiking interest rates until markets break.
Authored by David Stockman via The Daily Reckoning,
Back in the 1950s when GM had 50% of the auto market they always said that, “As General Motors goes, so goes the nation.”