Pressuring the Fed

The heat is on
On the street
Inside your head
On every beat
--Glenn Frey

The president's attacks on the Fed will only get louder as markets move lower. He won't be the only one.

For nearly ten years, stocks have risen to record levels on an ocean of easy money. Investors have been trained to expect ever higher prices. When prices go down, they will play the blame game. And, ironically, they will blame precisely the entity that created the asset price bubble in the first place.

When will the Fed and other central banks give in to the pressure to stop tightening and start relaxing monetary policy once again? "Twenty percent off the highs" is an estimate floating around my circles.
We're nearly 10% off the highs currently.

The faster markets drop, the louder the calls will get, and the quicker the Fed will cave.

Whether that action blows the bubble bigger, or actually serves to pop it, remains to be seen.

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