"But I am bound upon a wheel of fire, that mine own tears do scald like moulten lead.”
William Shakespeare, King Lear
In her defense, Janet is having to shovel out from a blizzard of bad karma created by her predecessors, as well as the results of her own actions. Nevertheless, she was not shanghaied into the job.
The Fed has revised to the downside the revision of growth which they had boldly put forward in April, along with predictions of rate hikes to cool off a robust economy.
Initially the markets took this turn back to dovishness as bullish, but then they thought about it and realized that the change in outlook is because there is no real economic recovery.
This is not a new concept, after all, a lack of recovery. Except in the fevered imaginings of skittish bureaucrats who can't keep but failing, without changing.
We have not had a real recovery for about five years or so, after the initial rebound from the crash in 2007-8, which was caused by— miscalculations by the Fed.
And of course this kind of widespread stagnation and transfer of wealth was not possible without the corrosive effects of the corruption by big money of the political and regulatory processes. All in support of an oversized financial sector that has become largely parasitic to real growth and the broad creation of wealth.
A banquet of consequences, now being served.
Ride a painted pony, let the spinning wheel spin...
Have a pleasant evening.