Do you need any more proof the Fed is manipulating the financial markets? They know exactly what they’ve done and who has benefited.
For years, market watchers and Fed skeptics had warned that the record low volatility “blanket” that has fallen like a pall over the comatose market was the result of Fed actions, both direct or indirect. And while they mostly spoke metaphorically (although back in 2012 we observed a distinct shift in the VIX futs when the current head of the Fed’s trading desk, Simon Potter, replaced Brian Sack), we now have explicit confirmation that the Fed’s “short vol” position appears to be rather literal.
This is what the next Fed Chair, Jerome Powell – who is scheduled to replace Janet Yellen next month – said during the October 23-24, 2012 FOMC meeting – just one month after the Fed announced QE3, as today’s just released 2012 FOMC transcripts revealed:
Continue reading “Fed Chair Powell’s Stunning Admission: “The Fed Has A Short Volatility Position””
