All these changes won’t change our lives from one day to the next, but since the Fed’s perceived independence has been such an important part of the US dollar maintaining is reserve status, the longer-term fallout to the economy could be substantial. The ten-year interest rate, already trending downward, plummeted. The reputational damage is done, and the market, world leaders, and domestic business leaders now openly questions the Fed’s independence. Whether this change is due to caving to political pressures or to true economic data changes hardly matters. The speed of the Fed’s about face from last fall is stunning. On March 20 th all questions were removed. In December there were indications this could be changing. By focusing on its three official mandates, the true health of the economy could be more in focus. Additionally, comments and actions indicated the Fed was pulling back from its fourth (self-imposed) mandate, stock market health. Not necessarily the policy decisions (the balance sheet reduction had a far greater impact on market conditions than did the interest rate increases), but his willingness to ignore the President despite the increasing abuse. Not about any particular governor or their intellect, but the hubris of believing that a few people in a room know better about what needs to happen with monetary policy than the millions of daily transactions with the US economy and the quite obvious kowtowing to political whisperings despite claims of utter independence.Ĭonversely, I was encouraged by the first couple years of Jerome Powell as Fed Chairman. Ironically, Dead or Alive’s vocalist Pete Burns, who wrote the song in the title, has implied that the song came together almost more by mistake than any specific inspiration.Īs longtime readers of the Altus Insight know, I have often been cynical of the Federal Reserve’s meddling in the economy.
This has little to do investing or economics other than this song came to mind after the March Fed governor meeting when Jerome Powell’s post-meeting speech officially and unequivocally reversed the Fed’s tightening strategy. For those of you interested in such thing, the #1 song in the poll was the Police’s “Every Breath You Take”, just squeaking by Michael Jackson’s “Billie Jean”. Unlike many pop hits of the 1980s, the song endured, recently being voted #17 best UK 1980s single (out of the 191 songs to hold the spot). Closer to a one-hit wonder than more legendary English bands like the Beatles or the Rolling Stones, Dead or Alive none the less struck gold with this song rising to the very top of the UK pop chart in March of 1985 and peaking at 11 on the US Billboard Charts in August of that same year. The song from which this article takes its title was released in 1984 by English band Dead or Alive. You spin me right round, baby right round like a record, baby Right round round round You spin me right round, baby Right round like a record, baby Right round round round.
Well I.I set my sights on you (and no one else will do) And I, I've got to have my way now, babyĪll I know is that to me You look like you're havin' fun Open up your lovin' arms Watch out, here I come Yeah I, I got to know your name Well and I, could trace your private number baby All I know is that to me You look like you're lots of fun Open up your lovin' arms I want some You spin me right round, baby right round like a record, baby Right round round round You spin me right round, baby Right round like a record, baby Right round round round
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