“Heisenberg’s uncertainty principle showed that the act of observation impacts a quantum system. But the discovery of the uncertainty principle itself did not alter the behavior of quantum particles one iota. The principle applied before Heisenberg discovered it and will continue to apply long after human observers are gone. But social theories – whether Marxism, market fundamentalism, or the theory of reflexivity – can affect the subject matter to which they refer.”
—George Soros
When you approach the limits of monetary policy, government debt, influencing the economy and your currency by setting interest rates and so forth — you are entering unchartered territory of what is accepted and expected in the dismal science of economics.
This is where Powell’s Fed finds itself today and the complication is further compounded by the reality that Powell is not only setting rates for his country and his currency, but of the whole world and the global reserve currency…
The Fed: Threading the Needle