Is The Fed Finally Done Rescuing Markets?

One analyst thinks Kevin Warsh is Volcker 2.0 and everything just changed. I'm skeptical.

GLJ Research’s Gordon Johnson is one of my favorite analysts on the street to read and gets a rare endorsement from me (I hate basically everyone selling sell-side style research) because, like my friend Mark Spiegel, he is one of the last few analysts out there that seems committed to the truth….no matter how ridiculous it makes him look in the short term while he’s waiting for his theses to play out.

Johnson came away from this week’s Fed meeting with a conclusion that would have sounded almost absurd just a few months ago: the Fed may finally be breaking with the post-2008 playbook. And the timing couldn’t be better for the Fed to do this to make a total fool out of me. After all, I literally just predicted a month ago there’s no way they would ever stop the neverending cycle of QE they started two decades ago. Days ago, I satirically wrote that the only bear case left for markets is total human extinction.

Enter Kevin Warsh’s first press conference as Fed Chair with inflation running completely out of control. My friend GoJo makes the…err…bold claim that the Fed is not tweaking it’s post-2008 playbook…not adjusting it around the margins…breaking with it.