The Fed has far less control over the economy than most people think, and its real value to politicians is as a convenient scapegoat — a neutral take that matters for anyone who blames or credits the Fed for market moves.

• The Fed does not actually steer the economy; the idea that it does is an illusion of control.
• Its real job is to be a lightning rod, absorbing blame when things go wrong.
• Politicians like Trump can point at the Fed and say the mess is not their fault.
• Markets play the same game, blaming rate hikes every time stocks fall.

Outlook: Expect more public finger-pointing at the Fed from the White House and Wall Street whenever the economy or stocks stumble.