By Graham Summers, MBA | Chief Market Strategist
The #1 mandate for the Fed is to maintain financial stability. That is literally the Fed’s job. It’s supposedly why the Fed was created in 1913.
The stock market just experienced one of its worst collapses in history. It was literally the 5th fastest 10% decline in the last 75 years. All told some $11 TRILLION in wealth has been erased. And it’s not as if the markets have stopped breaking down. The chart of the S&P 500 is UGLY.
At the same time, the U.S. dollar is breaking multi-year support.
And the long end of the Treasury bond market is in danger of breaking down to the point that yields are on the verge of erupting higher. This is what debt spirals are made of!
Put simply, the ENTIRE financial system is on edge.
So, what do our current Fed Chair Jerome Powell do? He trashes the economy and the stock market in a speech.
Yesterday, Chair Powell spoke at the Economic Club of Chicago. Rather than soothing the markets by stating the Fed stands to act, he went DARK with his speech, stating that tariffs will have a negative impact on the economy, trigger an uptick in inflation, and potentially have a “larger than expected” impact. When asked if the Fed would intervene in stocks if they continued to collapse, he said, “No, with an exclamation.”
This is simply jaw dropping.
Again, the Fed’s job is to maintain financial stability. The entire financial system is on edge, and the Fed Chair is warning about an economic downturn, higher inflation, and saying that he doesn’t care if the stock market collapses.
I cannot remember ANY Fed official EVER being this bearish/ negative on things when the financial markets are on edge. And it begs the question, “is the Fed TRYING to crash the markets?”
We know the Fed hates Trump. You can literally feel the disdain in their public statements. But at this point it appears that senior Fed officials have taken things to the point of negligence.
A CENTRAL BANKER’S JOB IS TO PROMOTE STABILITY, NOT KICK THE MARKETS WHEN THEY’RE DOWN.
This is an extremely dangerous situation. The Fed basically just told investors, “you’re on your own with this mess.”
The odds of a stock market crash are now higher than at any point since the pandemic.
If you’ve not prepared for this, the time to do so is NOW before this unfolds.
Indeed, our proprietary Crash Trigger is now on red alert. This trigger went off before the 1987 Crash, the Tech Crash, and the 2008 Great Financial Crisis.
We detail this trigger, how it works, and what it’s saying about the market today in a Special Investment Report titled How to Predict a Crash.
Normally this report is only available to our paying clients, but in light of what’s happening in the markets today, we are making just 99 copies available to the general public.
To pick up one of the remaining copies…
Graham Summers, MBA
Chief Market Strategist
Phoenix Capital Research
