prudentinvestor

The Fed's Big Gamble

Interesting to see how the fed's actions are frequently described in heroic terms. You put it as "..This is a daring gamble on the part of the Fed,..", which sounds brave, adventurous, and dashing.

Whenever the fed cuts rates, the mainstream media call the move "bold". In many instances, however, the rate cuts are priced-in by the market before the fed meets, and the market has thus put them on notice that failure to cut would "disappoint" and tank the market. So the fed dutifully cut, and the media rewards them by extolling their boldness, even though "bold" in these situations is certainly not the right adjective!