Have you considered that what they are doing may have nothing to do with the economy? If they are showing you their right hand, watch what the left hand is doing because that is where the real action is.

The Fed may have no choice. They may be avoiding another monetary crisis from problems within the banking system or the derivatives market.

Because they say it is about the economy, does not mean it is. What started this episode five years ago was about the over leveraged banking system and derivatives gone bad. Today we have an even bigger too big to fail banking system and a much larger derivatives market. Nothing has been fixed since the first crisis. Should we think all is well and good now in that department?

The economy may be the least of their worries, but confidence must be maintained so they will tell us what we need to hear to be calmed.

Nothing to see here folks. Move along.

John