With the goals of full employment and stable prices and the legal levers the fed has to pull,at the high level, it seems very unlikely the JH speech will change the transmission mechanisms of fed policy. Extreme dovish talk is certainly expected. Can this go badly? Prob not but..

My view short term is that $GLD $SPY $QQQ and B/E longs (my portfolio) May dip if the extreme dovish talk isn't extremely dovish enough. But the talk largely doesn't matter. The Money Tsumai is very strong right now and so any dip in above should be bought. Down a level I ..

I wonder if asset purchase mix will shift in order to be more inflationary. (Away from treasuries toward riskier assets) as each $ printed would have more beta toward risk premium contraction and closer to the real economy. But wealth inequality is a wildcard...

The feds legal levers (without a fiscal spending bill or unlikely changes in mandate) give little wiggle room to address wealth inequality. Perhaps it can be spun that pushing money to the real economy (and thus buying riskier assets) is a the feds lever. But...

My guess is that the Speech will make the most direct statement in recent memory pleading for both stimulative fiscal action and more directed helicopter money to address wealth inequality. But their levers will still inflate assets in order to inflate the economy. End of thread