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The Fed's Problem? It Forgets This Old Adage

by Brian Whitmer
Updated: September 15, 2020

Ask most investors who controls the economy and the markets, and you'll hear -- the U.S. Federal Reserve Bank. (Many will also say, the President.)

In other words, most investors believe that the federal and quazi-federal agencies can push the right buttons and make the economy "hotter" or "colder" as they please.

The reality is that the feds only appear to be in control. (To anyone who doubts that, we say: Please review the timeline of events and federal interventions during the 2007-2009 financial crisis, as one example.)

Today, the Federal Reserve says that it will "allow" some inflation, but the fact of the matter is, the Fed doesn't control inflation. As the old saying goes, "You can bring the horse to water, but you can't make him drink."

Watch our Global Markets Strategist explain using several eye-opening charts.

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