There are only a handful of people in the financial blogosphere that have any business talking about the Federal Reserve or critiquing its actions and everyone else would do well to just STFU.
Cullen Roche is one of the handful of voices I’m interested in hearing from ahead of tomorrow’s FOMC statement and the whimsically named Operation Twist that everyone is so keyed up about…
From Pragmatic Capitalism:
I was one of a handful of people who explained in great detail why QE2 would fail to revive the economy, but we continue to see faith and mythology surrounding the Fed’s new campaign efforts. I won’t rehash these arguments today. The bottom line is, these languages are refreshing in that it’s nice to see the Fed trying to be more transparent, but they’re not going to push a $15T economy in any sustained direction for more than a few minutes on Wednesday as the Wall Street trading desks go berserk over some minor statement change….
Unfortunately, most of what the Fed has been up to in the last year has been fostering trading opportunity as opposed to putting some backbone into this economy. Operation Twist seems to be just another gimmick from a desperate central bank. For an explanation of what we can expect from the Fed tomorrow and whether it will even matter, head over at the link below.