Fed's 'laser beam' focus is bullish for market, top economist Michael Darda suggests

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Fed mistake risk is lower now than it was yesterday: Top economist Michael Darda (via TradingNation)

, otherwise known as the dual mandate which has been followed since 1977.

"They won't be tightening policy if inflation is below their target simply because the labor market is perceived as tight," said Darda. "That was probably the most fundamental change that we saw."on the economy and the market, now considers himself constructive. He cites strong monetary and fiscal support for optimism.

"If we just look at the last three full months of data that we have, this economy started to turn much sooner than anticipated in over the May, June and July period," he noted. "The upturn has been much more forceful, whether that's been employment or sales, production — obviously the housing statistics have been off the charts.""It's not a perfect V. We're not recovering exactly as quickly as we fell off in terms of employment," he said.

 

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TradingNation Darda needs to give a master class on what THE Feds mandate actually is... many have no clue.

TradingNation The risk weighted bank capital requirements are based on perceived credit risks; not on misperceived credit risks, like 2008’s AAA rated, or the unexpected, like Covid-19. Therefore, banks now stand there with their pants down. Good job regulators!

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