The Fed governors, and especially the Bank presidents, have seemed puzzled over the markets and economy since roughly July, they haven’t demonstrated that they seem to understand much of what’s going on. At some point they probably ought to swallow their pride, admit some degree of ignorance, and trust the collective judgement of millions with trillions at risk, and take some lead from market prices rather than their models, whether interest rate or equity prices.

Incrementalism doesn’t seem to be helping much right now…

Steve