ART CASHIN: It Doesn't Take A Genius To See The Irony In Yesterday's Market Action

sherlock holmesSherlock Holmes

Photo: Wikimedia Commons

Early in yesterday’s trading session, the Wall Street Journal’s Jon Hilsenrath reported that the Federal Reserve was considering a new “sterilized” bond buying program.Art Cashin found this line about inflation from Hilsenrath’s article to be ironic considering yesterday’s market action.

Federal Reserve officials are considering a new type of bond-buying program designed to subdue worries about future inflation if they decide to take new steps to boost the economy in the months ahead.

Here’s Cashin’s comment in this morning’s Cashin’s Comments:

So the Fed is looking for a way to lower rates without producing any inflationary pressure.  That’s because critics have claimed the inflationary impact of prior easing managed to push up oil, gold and other commodities.  It also weakened the dollar.

OK, now put on your Sherlock Holmes hat and examine yesterday’s action.  Stocks rallied but so did gold and oil and lots of commodities.  The dollar also fell.  Those actions were just the ones that the supposed new program was designed to avoid.

SEE ALSO: 5 Art Cashin Brain Teasers That Will Drive You Crazy >

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