The Fed Has Given Up

Federal Reserve Chairman Jerome Powell held a press conference today to discuss the Fed's intended action for the next four years. The Fed's plan is to keep rates at zero forever and do nothing more. Such actions will be insufficient to say the least when it comes to maintaining the pace of multiple expansion in the stock market. In short, if the Fed does not do more to inflate stock prices, those prices will necessarily begin to deflate. All else equal, stocks will fall, significantly. Once this begins to happen, we will have to see how the authorities change their tune and attempt to save Wall Street just like they always have.