Does the Fed Really Control the Market?

In this clip from The Drift, tastytrade founder Tom Sosnoff makes a provocative argument to Adam Mesh: the Federal Reserve has become largely irrelevant when it comes to actually moving markets. Sosnoff's reasoning is simple math. The U.S. Treasury bond market is roughly $30 trillion. The Fed, by contrast, moves around five to ten billion dollars at a time through its open market operations. That's a fraction of a fraction of the total market. In Sosnoff's view, that scale mismatch makes Fed rate decisions function more like a PR statement than a genuine market mechanism the bond market has already priced in what's going to happen long before the Fed makes its move. His conclusion: don't expect the Fed to trump the bond market. The bond market is too big, too fast, and too forward-looking. The Fed follows. It doesn't lead. Watch the full episode of The Drift on Benzinga's YouTube channel. #TheDrift #TomSosnoff #FederalReserve 🌐 Find more market-moving insights at https://www.benzinga.com — your one-stop destination for the latest financial news, data, and expert analysis to stay ahead of the markets. 🖥️ Want the same tools the pros use—without the $10K Bloomberg terminal? Benzinga Edge gives you real-time portfolio alerts, weekly stock picks, and pro-grade research in one command center. 👉 https://bit.ly/4unSKiB ------------------------------------------------------------------------------------ 📲 Follow us on socials @benzinga 🔔 Subscribe To The Channel: https://www.youtube.com/@Benzinga ------------------------------------------------------------------------------------ ⚠️ Disclaimer: Investing in financial markets carries risk, and there are no guaranteed returns. All information is for educational purposes only and should not be taken as financial advice. Always do your own research and speak with a qualified financial advisor before making investment decisions. Only invest what you can afford to lose. Past performance does not guarantee future outcomes.