Kremlinology? Call It Fed-Res-ology: Reading the Tea Leaves of the Federal Reserve Board

Time was, no one gave a shit about the Federal Reserve’s board. Who the drones were? What they did? Who cared!

No, not the Kremlin:
The Eccles Building.

But ever since the Fed started to expand its balance sheet in the fall of 2008, what the Fed does has mattered—and now with Quantitative Easing 2 and the effective monetizing of 50% of the Federal government’s deficit, it matters more than ever. 

Next week, on January 25, the Federal Reserve’s Open Market Committee (FOMC) will meet. This meeting is important, because the composition of the board will change—and therefore, possibly the direction of the board. 

So like Kremlinologists of old, we have to start paying attention to what the FOMC looks like, if we want to divine what will happen.

What will happen not merely with monetary policy, but with the American economy itself. 

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