Sometimes I have dreams about the Federal Reserve. Yes, I know I should probably see a therapist about this. Last night's dream was about an imaginary conversation that Fed Chair Jerome Powell may, or may have not had, with some alternate non-voting Fed guy named Jim Bullard....a guy that doesn't really matter to the stock market, but from whom we still receive regular Bloomberg news headlines. 

Transcript of Imaginary Conversation Between Fed Chair Powell and St. Louis Fed Nobody Bullard (August 9th, 2021):

Powell: Hey Jim, how's the weather in St. Louis? I hear nobody wants to get vaccinated over there....

Bullard: The weather is hot Jerome, just like these inflation readings!! I'm freaking out over here in my office with all these lumber charts from May and coking coal....have you seen coking coal Jerome?!!! We need to taper quickly and raise the Fed Funds to 5%.

Coking Coal (One Year)

Powell: Look here Jim, I think you've been reading too much Zero Hedge along with some of your show me state compatriots. We've got this under control, it's transitory, just like I've been saying. The economic data is actually falling off a cliff right now but we're trying to keep it quiet for now. What I need you to do is play a little "good cop, bad cop" with me, ok?

Bullard: You mean you want to play dress up like we are kids?

Powell: No Jim, I want you to do a couple interviews where you talk about how fast we need to taper to combat inflation. Give everyone a little scare, you know?

Bullard: l like interviews Jerry, I'll give that guy at Marketwatch a call right now. 

Powell: Great Jim, the sooner the better. Then I'm gonna come in and save the day at Jackson Hole at the end of the month. Sort of a grand entrance to save markets and relieve everyone's anxieties.

How's that sound Jim? You can be the tough guy from Missouri refusing to get vaccinated, worried about inflation and concerned for the little guy. And then I'll come in and save the markets and we'll have a big rally just in time for Labor Day.

Bullard: That sounds great Jerome, you've always got the best ideas. I guess that's why they made you the Chairman.....

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