Bank of Canada Balance Sheet QT Sheds 64% of Pandemic QE Assets, Indicates QT Might End in September 2025 by Wolf Richter • Apr 7, 2024 • 53 Comments “Balance sheet normalization” will continue even if the BoC cuts its rates. It’s all about “settlement balances.”
ECB Balance Sheet QT: -€2.2 Trillion from Peak, to €6.61 Trillion. Shed 25% of Total Assets, 53% of Pandemic QE by Wolf Richter • Apr 7, 2024 • 38 Comments Fed and ECB combined removed $4 trillion in liquidity. Inflation, after decades of calm, is hammering some sense into these central banks.
10-Year Yield Hits 4.40% as Bond Market Begins to Adjust to Higher Forever: Higher Rates and Higher Inflation by Wolf Richter • Apr 5, 2024 • 204 Comments Suddenly lots of talk the 10-year yield will revisit 5%, which is funny just a few months after Rate-Cut Mania.
Nothing in the Jobs Report Indicates the Fed Should Cut Rates: Labor Market Plugging Along Just Fine despite 5.5% Rates by Wolf Richter • Apr 5, 2024 • 73 Comments And wages rose at a good clip too.
Fed Balance Sheet QT: -$1.53 Trillion from Peak, to $7.44 Trillion, Lowest since February 2021. The BTFP Plunged by $34 Billion by Wolf Richter • Apr 4, 2024 • 137 Comments Quantitative Tightening has removed 37% of Treasury securities and 27% of MBS that pandemic QE had added.
Fed’s Kashkari Says Quiet Part Out Loud: Maybe No Rate Cuts in 2024 if Inflation Continues to Move “Sideways” by Wolf Richter • Apr 4, 2024 • 107 Comments The stock market didn’t like that at all.
How the Huge Wave of Immigrants into the US in 2022 and 2023 Impacts the Employment Data of the BLS Household Survey by Wolf Richter • Apr 3, 2024 • 112 Comments The BLS uses the Census Bureau’s understated population estimates that ignore the surge of immigrants. But the CBO’s estimates pick them up.
Side Effect of US Oil & Gas Boom: Record Ethane Production & Exports by Wolf Richter • Apr 3, 2024 • 45 Comments Production, consumption by the US petrochemical industry, and exports all hit records, and the price collapsed.
This Labor Market Is Not Loosening Further: Fed Gets More Reason for Wait-and-See by Wolf Richter • Apr 2, 2024 • 86 Comments But the headlines-grabbing layoff announcements had the effect of calming the churn.
Office CRE Mess Keeps Getting Worse, Massive Repricing Underway by Wolf Richter • Apr 1, 2024 • 95 Comments It’ll take years to get this mess cleaned up, at the expense of investors, landlords, and banks.
