Hi Protagonist,If the "market consensus" is that inflation is in...

Hi Protagonist,
If the "market consensus" is that inflation is in check, wages are growing, the FED is not creating a "housing boom" by purchasing at least $40Bln+ of mortgage backed securities every month, then in my opinion the market is in la la land. As most investors (us) and other market participants do not believe in the above "market consensus", who is the "market"? The FED is issuing debt through one door and purchasing assets through another. Does this make FED the "market"? This is not "market" and certainly not a free one. If the FED is the "market", however, which it appears to be in the distorted reality we live in, than I agree with your comment regarding "market consensus" ;-). By the way, for the last 13 years the FED has been telling us that the economy has been recovering, whilst they were continuously ramping up their stimulus measures. These stimulus measures have now become ridiculous and, frankly, IMHO the $US is on the path towards destruction, regardless of the interest rates.
Regards,
Dratoz