U.S. presidential candidate Vivek Ramaswamy slammed the Federal ReserveFederal Reserve ahead of its policy announcement on Wednesday, saying the central bank is the cause of the disaster, and yet everyone is hanging on to their words. The fact that we are paying attention to the FOMC meeting, the Federal ReserveFederal Reserve at all, is the source of this disaster for the last 25 years, when they expanded their mandate to play this game of financial god by managing both inflation and unemployment. It is like trying to hit two targets with one arrow. Ramaswamy told CNBC that it had been a disastrous 25-year experiment.
There is a 73% chance of a 25 bps rate hike during this policy compared to over 26% of the chance of status quo, according to the CME FedWatch Tool.
Markets did sigh of relief on Monday following UBS Group AG's rescue deal with Credit Suisse Group AG CS, as well as co-ordinated action by central banks around the world to boost liquidity. The SPDR S&P 500 ETF Trust SPY was 0.96% higher and the Invesco QQQ Trust Series 1 QQQ gained 0.35%.
Ramaswamy pointed out that market participants who are watching out for every word spoken by Federal Reserve officials has nothing to do with their wisdom.
In the early 90s the Fed focused on stabilising the dollar, which was what it used to do in the 80s and early 90s. This is the most under-discussed story in the whole thing. They are the root cause of this whole thing. We are hanging on to their words not because they have any special wisdom, remember that. Market participants are looking at how much damage they possibly or are going to do, he said.
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