The Federal Reserve has now held two closed-door meetings under expedited procedures this week, and Fed chair Janet Yellen had a impromptu White House conference between those meetings with President Obama and Vice President Biden.
So what’s going on?
IS this game planning for how to handle the economy and rate rises leading up to the conventions and the elections?
Perhaps the Fed is discussing who is the leak on the five US banks that failed their “Living Wills”.
JPMorgan, Wells Fargo, Bank Of America and State Street are among the banks that submitted plans to unwind their operations, should a bankruptcy happen, that were unacceptable to the Fed and the FDIC.
The news on the failure was leaked to some news outlets prior to the scheduled release. This necessitated that the joint news announcement be released during JPM chief Jamie Dimon’s earnings press conference.
We may never “know” what was being discussed by the Fed or at the White House, but if you look at the bad news coming out from the banks yesterday, why did the market and the bank stocks soar on that news.
More QE? Could be.