If the Fed has promised to print an unlimited supply of money, then why are inflation expectations at crisis lows and falling? At the same time, there are still-growing signs of illiquidity and an interbank crackup. Bazooka after bazooka, yet they don’t seem to be having much effect. That’s true domestically but more so offshore. […]
The New York Fed has released a set of Frequently Asked Questions to address programmatic inquiries about the facility.
Monetary policy can be implemented through outright purchases or sales of securities, which permanently changes the size of the Federal Reserve’s System Open Market Account (SOMA) portfolio.
There are three things the markets have going for them right now, and none of them have anything to do with the Federal Reserve. More and more conditions resemble the early thirties in that respect, meaning no respect for monetary powers. This isn’t to say we are repeating the Great Depression, only that the paths […]
Sometimes technicals work so brilliantly it just has to be pointed out. A big rally was going to come. After all we’ve had the most oversold readings ever on some measures and […]
Why didn’t they think about this first? All of a sudden, with markets in the toilet (especially stocks), everyone is itching to get the economy back up and running. The first real peeks at what’s happened to it (as we’ll see in a minute) have definitely contributed to what seems to be an about-face. Many […]
It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest.” —Adam Smith, The Wealth of Nations
OPERATION – RESULTS Operation Date: 03/24/2020 Operation Type: Outright Coupon Purchase Release Time: 02:29 PM Close Time: 02:50 PM Settlement Date: 03/25/2020 Maturity/Call Date Range:…
The collateral supporting the global mountain of debt is crumbling as speculative bubbles deflate.A great many freebies are being tossed in the Helicopter Money basket. That households experiencing declines in income need immediate support is obvious, …
When a house is on fire nobody has time to think about the future. All effort is on extinguishing the fire and save what’s left. That’s the Fed’s role right now dousing […]