If you’ve ever wondered what’s behind the phenomenally complex algorithms shaping what “The Markets” predict will occur with this or that financial parameter—other than the evident over-consumption of cocaine by traders—perhaps this account by London’s Financial Times will be helpful.
Kevin Warsh, the new head of the Federal Reserve, put on his sternest face to tell Congress this week, “The members of our committee have no tolerance for persistently elevated inflation, and we share a resolute commitment to ensure price stability.” That was taken to mean that he would raise interest rates to contain inflation, and so “The Market” determined that meant a .25% rise in October.
