The Fed has cut back its POMO purchases to an average of $8 billion per day of Treasuries and $6 billion of MBS this week. That’s down from $10 billion and $8 billion last week, and hundreds of billions in the peak of the panic in April.
The effects of that are beginning to show up in stock prices. Be prepared because here’s what happens next.
The Economic Policy Institute published an interesting piece of research on the links between H1B visas and lower wages paid by the U.S. employers for key skills: https://www.epi.org/publication/h-1b-visas-and-prevailing-wage-levels/. As far as I …
S&P500 and earnings per share: what should matter, doesn’tWe are now in extreme territory of the markets ignoring basic corporate fundamentals.
The Giant Glut of Oil continues (see my analysis of oil markets fundamentals here: https://trueeconomics.blogspot.com/2020/04/23420-what-oil-price-dynamics-signal.html)China strategic oil reserves have also surged. U.S. oil reserves are now nearin…
From Factset: “The decrease in first-quarter real GDP was largely driven by the 7.6% decline in consumer spending
With early effects of COVID19 pandemic in:Both charts via Factset.
March was bad. April is worse.
A month ago the Fed was buying all new Treasury issuance and then some. Now it’s nowhere close to doing that. In recent days the Fed has been absorbing only around a fifth of new Treasury issuance. Is it enough?
A month ago the Fed was buying all new Treasury issuance and then some. Now it’s nowhere close to doing that. So is the Fed doing enough to keep the short term bull trend going? Here’s today’s technical setup.
Fed QE $2.000B TIPSPurchase 2020-05-06 NYFed treasury securities operations
