We’re back to reading tea leaves! Hooray! Next week the Federal Reserve will have its second meeting since Kevin Warsh officially took the helm. And, at this point, the outcome is far from certain, which is unusual given that ever since Ben Bernanke instituted “forward guidance” the market usually knew what to expect. Warsh does not think “forward guidance” is a good idea, therefore the market needs to read the tea leaves like in the old days. Second, Powell won’t leave and appears to be quietly leading an opposition force. And third, the inflation data are murky at best, with a few months of what appears to be a ... (full story)