Fed’s Balance Sheet Plunges by $230 Billion in 6 Weeks, Biggest such Plunge in 14 Years by Wolf Richter • May 4, 2023 • 103 Comments Massive gyrations on the balance sheet after FDIC’s take-down of First Republic, sale of its assets to JP Morgan, and FDIC’s loan to JPM.
Powell Swats Down Rate Cut in 2023, Purposefully Leaves in Doubt a “Pause” for June Meeting by Wolf Richter • May 3, 2023 • 132 Comments “We’re going to be looking at those factors to determine whether there is more to do.”
Fed Hikes by 25 Basis Points, to 5.25% Top of Range. Says, “Extent to which Additional Policy Firming May be Appropriate,” instead of “Pause.” QT Continues by Wolf Richter • May 3, 2023 • 183 Comments The rate is now where it last was during the 14-month-long pause from June 2006 to August 2007.
Fed’s Balance Sheet Plunges $171 Billion in Five Weeks since Peak Bank Bailout as QT Continues and Liquidity Support Cools by Wolf Richter • Apr 27, 2023 • 156 Comments First Republic, is this you?
But What If We Don’t Get a Recession in 2023? That Would Be a Bummer for Wall Street by Wolf Richter • Apr 19, 2023 • 229 Comments Just a slower-growth muddle-through economy that adjusts to higher rates and sticky inflation.
What Would Happen if the Fed Caves to 4%-5% Core PCE Inflation, Gives up on 2%, as some Folks are Clamoring For? by Wolf Richter • Apr 16, 2023 • 349 Comments The economy would muddle through, but in the markets, all heck would break loose. Here’s why.
Fed’s Balance Sheet Plunges by $101 Billion in Two Weeks, as QT Continues and Bank Liquidity Support Begins to Unwind by Wolf Richter • Apr 6, 2023 • 114 Comments The dream of a return to QE was fun while it lasted.
Status of US Dollar as Global Reserve Currency and Exchange Rates: Slow Long-Term Decline on Track by Wolf Richter • Apr 2, 2023 • 188 Comments But the Chinese Renminbi didn’t make any progress at all last year.
Free Money Turned Brains to Mush, Now Some Banks Fail by Wolf Richter • Mar 25, 2023 • 177 Comments The Fed’s rate hikes and QT didn’t break anything except consensual hallucination.
The Fed Should Be Fired as Bank Regulator. Powell’s Discussion of Silicon Valley Bank & Regulatory Failure Shows Why by Wolf Richter • Mar 24, 2023 • 191 Comments The Fed is structurally too conflicted to regulate banks. The FDIC is not, but it needs tiger teeth to bite CEOs’ heads off.
