You can’t completely blame the boys and girls on Wall Street for thinking the Fed is omniscient and that neither the macro-economy nor the stock market will ever again plunge on its watch.
After all, that’s the very gospel which emanates from the Eccles Building almost daily. And there is no better illustration of that then a recent Wall Street Journal piece which essentially amounted to B-Dud’s swan song upon his imminent retirement.
The Fed has done absolutely nothing to help the main street economy, and much to impair it, during the last 11 years. That happens to span, of course, Bill Dudley’s entire tenure as chief economist at the New York Fed and then head of the latter, where the former Goldman Sachs partner functioned as Wall Street’s viceroy on the FOMC.