As many recent experts on this channel have lamented, it’s hard to be an investor in today’s market when the price action of securities is driven far more by Fed policy decisions than underlying company fundamentals.
As a result, the global investor community is reduced to speculating on what Jerome Powell and the 11 other voting members of the FOMC — the Federal Open Market Committee — decide to do next.
To better understand the innerworld of the Fed, I’ve recently interviewed former Fed senior economist Lacy Hunt, former Fed advisor Danielle DiMartino Booth, and Fed policy journalist Pedro de Costa. Today we add to that list by sitting down with Joseph Wang, a former senior trader on the Fed’s Open Markets desk. He understands the plumbing of how things work there intimately.