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.
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.
Dealers ended up taking in all of $78.4 billion, or about 16% of what was possible.
Nothing speaks of panic more than a gamble doubling down after a losing trade. And that’s what the Fe dis doing here. After seeing their emergency rate cut of 50bp going over […]
The Fed panicked today. It doesn’t know what to do because, as Jeff Snider pointed out, it has no clue what the disease is.
NO! It’s not the coronavirus, as the Fed claims, and litterally everyone believes. So the Fed’s prescription can’t work.
The Fed announced today that it would attempt to stuff $1.5 trillion in short term loans into Primary Dealer trading accounts over the next 3 weeks. OK, but will there be any takers?”
Rather than being confident about the effectiveness of their programs the central banks just don’t know what else to do. And it’s because they really don’t know what they are doing.
The calamitous triangle break that was pending yesterday morning, happened. We got the usual result. Badda bing, badda boom.
The eurodollar curve’s latest twist exposes what’s behind the long end. To recap: big down day in stocks which, for the first time in a while, wasn’t accompanied by massive buying in longer maturity UST’s. Instead, these were sold, too. Rumors of parity funds liquidating were all over the place, which is consistent with this […]
Can we please dispense with all notions that monetary policy works?
We got the expected rally, but God, it’s pitiful so far. This thing is on the verge of an explosive triangle pattern break.