The bubble-blowing admission has arrived.

Note: I accidentally republished this instead of updating it. The Move to the Street accidentally removed the link to Vimeo.

On Tuesday, Fed Chair Jerome Powell announced he was Ready to Cut Rates to "Effective Lower Bound" via "Conventional" Policy.

Unconventional the New Conventional

The unconventional is now the new conventional. Powell stated it's "time to retire the term 'unconventional' when referring to tools that were used in the crisis."

"The next time policy rates hit the ELB—and there will be a next time—it will not be a surprise," said Powell.


ELB stands for Effective Lower Bound. With that, Powell implied that interest rates will return to zero.

Open Letter to the Fed

In an open letter to the Fed, I asked Powell a set of questions on inflation expectations, demographics, the Phillips Curve, and the CPI, all areas in which the Fed has made repeated errors.

Hello Jerome Powell, We Have Questions

My questions, sent directly to the Fed before Powell's latest announcement, went unanswered.

Hello Jerome Powell, I ask again, instead of failed bubble-blowing tactics, how about some answers?

Mike "Mish" Shedlock

Musical Tribute to Bribes in the US, Israel, Nigeria, Everywhere

Israeli PM Netanyahu and Shell executives face bribery charges. US politicians are second to none when selling votes.

Globally Bad Weather: A Musical and a Sweatshirt Tribute

Retail spending is down in the US and the UK. Don't worry, there's globally bad weather everywhere one looks.

Vanishing Vix Musical Tribute

Nothing seems to phase the stock market for more than a day or two.

Fed's Asymmetric Bubble-Blowing Policy in Pictures

The Fed meets on July 31 to make an interest rate policy decision. What should the Fed do?

Brexit Musical Tribute: Smiling Faces Show No Traces of Evil That Lurks Within

The 585-page Brexit deal was so one-sided that 6 UK ministers resigned and Parliament openly laughed at PM Theresa May.

Rate Hike Odds Dive: Any Rate Hikes in 2019? Sucker Rally? Musical Tribute!

Stocks recovered from a huge move lower after a speculative WSJ report on a new data-dependent Fed. Any hikes coming?

Fed Worried About Lack of Inflation, Stock Market Bubble (Sort Of)

FOMC minutes show Yellen is no longer convinced that low inflation is transitory. Other members mention bubble concerns.

Junk Bond Bubble in Pictures: Deflation Up Next

The widely discussed "everything bubble" is, in reality, a corporate junk bond bubble on steroids sponsored by the Fed.

San Francisco Fed President: "No Signs Bubble About to Burst"

San Francisco Fed President John Williams cannot spot any bubbles. He wants gradual hikes.