Fed president John Williams is sending out the signals to the market that fed accommodation is not going to continue very much longer. In elite speak he is warning his buddies that its time to step off the Ponzi train and let it crash with everyone else aboard, thus making the elite stronger and everyone else poorer: "the labor market shows signs of expanding beyond its sustainable rate and the economy is operating above potential".
If you are pouring raw ethanol into the mouth of the carburetor and the engine is operating above its rated RPM then you either have to back off the throttle or something is going to blow apart. Yep, the economy is just like an engine that the engineers at the fed can ramp up and ramp down at will. Of course if you believe that crap you are in serious trouble. The economy is not an engine, it is a herd of cattle. The herd can be pushed around and moved here and there most of the time but if the herd isn't getting what it wants then the herd turns ugly and the cowboys lose their ability to control. That is what is coming. When the economic accommodation is removed things will begin to tank and then when the fed tries to fire their engine up again it will turn over but it won't start.
A big pullback is coming across the markets.
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