When you’re wrong, you’re wrong and I certainly didn’t have the Fed figured out accurately. However, let me pretend for one second I’m an analyst and reiterate (second over), that I think the Fed will have to raise rates at the December 11, 2007 meeting. Clearly this FOMC is determined to recreate the late 1970s inflation of the last Saturn cycle.*
I want to present a longer-term view of the Fed and the possibility that its current Chairman may not remain so.
Beginning late this year and extending through 2009, Pluto will aspect the Fed’s Sun (identity/the Chairman), Midheaven** (reputation/status), and Pluto (transformation). This has never happened in the Fed’s history. What it means is that the Fed’s purpose and scope will be radically revamped from its current existence.
Chairman Bernanke’s Sun, Moon, Mercury, Venus, and Jupiter will face challenging energies in 2008-09 from Saturn and Uranus. High level people (especially government) will exert even greater pressure on him to do their bidding. At the same time, he will want to free himself from these restrictions to pursue a different course of action. (Or he could disagree with the new duties and structure of the Fed.) These energies also have the potential to create health challenges from high stress. Bernanke’s position as Chairman expires on January 31, 2010. He will not be re-appointed, and will probably resign before then.
* See current Weekly Forecast Summary.
** The Midheaven cited here is the sign (Aries) on the tenth house of the Fed’s horoscope.
Federal Reserve: December 23, 1913, 6:02 PM Washington, DC (When President Wilson signed Act.)
Ben Bernanke: December 13, 1953 time unknown Augusta, GA