ILCB - Weekly Market Pulse: The Illusion Of Control

• If the unemployment rate is too high for the Fed’s mandate, ending QE might be more effective at solving that problem than continuing it, but I doubt stocks would like it - and that seems to matter to the Fed today.
• The economy is a multi-faceted, global beast which is controlled by no one. It can be distorted by faulty policies, as has been proved repeatedly throughout history and is being proven again today.
• Today, the economy is considered weak enough by the Fed to warrant “stimulation”, but there is so much liquidity over a year after the recession ended that NFTs and stocks appear to have the same fundamental appeal.
• Last week, the economic data continued to show an economy that is growing a bit above trend, even if the peak rate of change is in the past. Markets definitely shifted to a more positive cyclical view in the week.

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