Courtesy of ZeroHedge. View original post here.
Submitted by Tyler Durden.
We can now put to rest the debate whether the "most transparent in its communication" Fed, is also the most confused (if not to use a far more derogatory word) ever.
One one hand, Bloomberg reports that Fed Chairman Yellen laments that "she wants investors to be prepared for the possibility that the Fed will raise interest rates sooner than they currently project" and yet "her words are going unheeded."
And yet, on the other hand, at virtually the same time, Bloomberg also reports that the man who many say is truly in charge of the Fed, and certainly its market-moving branch, the 147x levered New York Fed, Goldman's former employee Bill Dudley warns about the need for “patience” on interest-rate increases and may require letting the economy run “a little hot." By a little hot, he means letting the global assets bubble Citi warned about yesterday, grow to truly monstrous instead of merely epic proportions.
Completing the comedy, a third Bloomberg commentator, Richard Breslow, accurately summarizes the situation:
"for Fed to rail against what the market is doing seems to me the height of absurdity. They should probably put all their speeches together, read them to each other, and find some way to talk coherently to the market."
But why? After all these Princetonian demi-gods are all the bullish case has left: if the baffle with bullshit strategy fails, it's game over, as the last thing the Fed can afford is to tell even a remote version of the truth. Said otherwise, the moment the Fed starts talking coherently to the market, is the moment the market plunges.
So until then, monetarist gods talk in mysterious ways.
