How times have changed. In the middle of 2018, we were told the risks to the global economy were all tilted to the upside.
The Federal Reserve wasn’t the only major central bank conducting open market operations (OMO’s) this week. On the other side of the Pacific, the People’s Bank of China (PBOC) had been, too. Big ones. And in both places, nobody really seems to know what to make of them even though they are actually connected to […]
In this disintegrative phase, people are increasingly indignant if their magical-thinking “solution” is challenged.It’s practically un-American to confess you’re worried. Can-do self-help and cheerfulness are expected, promoted and rewarded. So to…
Ft. Myers | Sisyphus is a figure from Greek mythology. For sins in mortal life, he was punished by Zeus to forever roll a boulder up a hill in the depths of Hades, only to see it to roll down again. The Federal Open Market Committee is essentially trapped in the torment of Sisyphus.
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.
The Census Bureau reported today New Home Sales remained at a better than 700k SAAR in September following the big jump over the previous few months. Though the number was slightly lower last month than the month before, it wasn’t meaningfully less. As discussed yesterday, while that might seem the Fed’s rate cut psychology combined […]
Flash PMI’s from IHS Markit for the US economy were split in October. According to the various sentiment indicators, there’s a little bit of a rebound on the manufacturing side as contrary to the ISM’s estimates for the same sector. Markit reports a sharp uptick in current manufacturing business volumes during this month. The manufacturing […]
Today’s Fed POMO was small, but TOMO went through the roof.
When we talk about money dealers (not just primary dealers) and liquidity, we aren’t just zeroing in on the repo market.
While things go wrong for Jay Powell in repo, they are going right in housing.