QQEW - Fed Consensus Goes AWOL As Monetary Policy Reinforcements Are Ordered

• The current lack of FOMC consensus is a signal of a wider lack of consensus at the Fed on how to implement its new monetary policy framework in detail.
• These twin consensus deficits have been exposed at the critical time of the US Presidential election.
• The US economy and the Fed’s response to the COVID-19 pandemic are “tales of two cities”.
• The Fed intends to focus on the “city” of the “asset-poor”, with its Inclusivity Mandate, by way of the Community Reinvestment Act.
• A lack of fiscal stimulus, until the new administration takes office, may force the Fed to ease again thereby supporting the “city” of the asset-rich and widening the gap with the “city” of the asset-poor.

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