In the aftermath of the Fed’s second consecutive dovish capitulation, which while framed as a response to the slowing economy (a slowdown which the Fed completely missed as recently as December when 9 FOMC officials expected 1 or more rate hikes and now expect 0) but was really meant to support assets, many have taken turns to urinate and/or defecate on the grave of Fed credibility, the latest among them Nomura’s Charlie McElligott, who this morning derives an intense pleasure, and feels “vindicated” as “the Fed’s hilarious tightening / normalization “clown car” experiment (and ensuing credibility farce) is now complete.”
