Prix Fixe?

So today is the day. The Fed meets ten times every year, and today is one of those days.

Every meeting we go higgety-jiggety about what the Fed is gonna do. And pretty much every meeting we’re not surprised.

The market is saying that the Fed’s gonna be on hold for the rest of the year. And most of the time, the market’s about right. But there’s a bigger issue out there.

Most of the time, we let independent parties set prices at mutually agreeable levels. Steel, oil, grain, and cotton all have their strategic uses, and we let buyers and sellers clear the market. But not with money. Somehow we think that a committee of 12 wise men and women will do a better job setting interest rates than the market.

Don’t get me wrong: I’m not saying that we don’t need a Fed. I just think that for all the strategic importance of money, we entrust the level of interest rates to favored few, rather than to a market of millions. And the stakes are pretty big.


Douglas R. Tengdin, CFA
Chief Investment Officer
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