Yesterday’s announcement from the Fed broke no new ground, and that is why we shouldn’t expect the sharp rallies that the news triggered in stocks and gold to get very far. Although major media outlets, including Yahoo Finance, interpreted the latest drivel as meaning the Fed has further opened the door to tightening, I inferred just the opposite — i.e., that Yellen & Co. have reasserted the right to continue waffling for as long as they damned well please. This has left investors who literally bought into a supposed June tightening in limbo. It also puts the Fed back near square one as far as convincing investors that tightening is coming. For my part, I will continue to assert that tightening is but a remote possibility — especially with the dollar in an explosive bull market, and with the supposed economic recovery creeping along on car-sale fumes and McJobs.
