‼️I find it curious how people behave in the market.
First comes HUGE OPTIMISM. Then, when reality starts to contradict the narrative, they deny exactly the obvious.
“Ah, but now the Federal Reserve is very concerned about inflation.”
When did that stop being true?
We’re talking about the very body responsible for monetary policy and for price stability. The problem was never to discover that inflation exists. The problem is how to control it without creating other imbalances in the process.
Warsh has many very positive points: experience within the Fed itself, knowledge of the markets, serving on the Board of Governors during the 2008 crisis, and a critical view of excesses in the conduct of monetary policy.
The issue isn’t competence.
The issue is that presiding over the FED requires CAUTION and CREDIBILITY. You don’t hold a position of that importance just by selling an optimistic narrative that the data may not allow to be sustained.
They can criticize Powell as much as they want, but one of his defining traits has always been precisely that caution. Years of experience taught him the weight that a single sentence by the Fed chair can have on the market.
And now reality begins to collect.
The U.S. faces a combination that is far from simple: sticky inflation, fiscal pressures, high debt, long interest rates under pressure, and a geopolitical scenario capable of changing expectations quickly.
There is no Fed chair who can simply cut rates and solve everything. Much less any political promise that can override economic math.
You don’t analyze the market by choosing the data that confirms what you want to happen.
You cross-reference the information, understand the context, and ask:
What is the market ABLE to do under these conditions, and not what I would like it to do?
FOMO works with expectations.
ANALYSIS works with EVIDENCE.🥷⚔️
#ThaiTraderOficial
First comes HUGE OPTIMISM. Then, when reality starts to contradict the narrative, they deny exactly the obvious.
“Ah, but now the Federal Reserve is very concerned about inflation.”
When did that stop being true?
We’re talking about the very body responsible for monetary policy and for price stability. The problem was never to discover that inflation exists. The problem is how to control it without creating other imbalances in the process.
Warsh has many very positive points: experience within the Fed itself, knowledge of the markets, serving on the Board of Governors during the 2008 crisis, and a critical view of excesses in the conduct of monetary policy.
The issue isn’t competence.
The issue is that presiding over the FED requires CAUTION and CREDIBILITY. You don’t hold a position of that importance just by selling an optimistic narrative that the data may not allow to be sustained.
They can criticize Powell as much as they want, but one of his defining traits has always been precisely that caution. Years of experience taught him the weight that a single sentence by the Fed chair can have on the market.
And now reality begins to collect.
The U.S. faces a combination that is far from simple: sticky inflation, fiscal pressures, high debt, long interest rates under pressure, and a geopolitical scenario capable of changing expectations quickly.
There is no Fed chair who can simply cut rates and solve everything. Much less any political promise that can override economic math.
You don’t analyze the market by choosing the data that confirms what you want to happen.
You cross-reference the information, understand the context, and ask:
What is the market ABLE to do under these conditions, and not what I would like it to do?
FOMO works with expectations.
ANALYSIS works with EVIDENCE.🥷⚔️
#ThaiTraderOficial