THE WOLF STREET REPORT: Markets Are “Fighting the Fed” by Wolf Richter • Jul 31, 2022 • 317 Comments One of the most important dictums in finance is this: “Don’t fight the Fed.” And this could get ugly.
GDP Sunk by Plunge in Private Investment, Drop in Government Spending. Consumer Spending Rose Despite Raging Inflation by Wolf Richter • Jul 28, 2022 • 225 Comments What Powell had indicated: Consumers hung in there, amid strong labor market, surging wages. But private investment plunged, incl -14% in residential.
Powell Puts 75-Basis-Point Hike on Table for Sept, Fed “Determined” to Get Inflation Down, Come Heck or High Water: Most Hawkish FOMC Press Conference I Ever Watched by Wolf Richter • Jul 27, 2022 • 363 Comments “People at the lower income spectrum are suffering from high inflation”: Seems Powell wants markets to come out of denial.
Fed’s QT Kicks Off: Total Assets Drop by $74 Billion from Peak, New Era Begins by Wolf Richter • Jul 7, 2022 • 245 Comments QE creates money. QT does the opposite: it destroys money.
Can the Government Even Pay the Rising Interest Expense on its Gigantic Debt as the Fed Pushes up Rates? Yes. Here’s Why by Wolf Richter • Jun 27, 2022 • 282 Comments Higher rates eventually enforce a sort of discipline on the drunken party in government and even in the private sector. That would be a good thing.
Fed Stops Dillydallying. So OK, Maybe No Softish Landing. Markets on their Own by Wolf Richter • Jun 15, 2022 • 297 Comments This is fast moving now, but the Fed is still pouring fuel on the fire.
These Jobs Reports Are Not Good for Stocks by Wolf Richter • Jun 3, 2022 • 160 Comments And the Fed can see the budding Wage-Price Spiral too.
Consumers Can Handle Fed Tightening: Their Debts, Delinquencies, Foreclosures, Collections, and Bankruptcies by Wolf Richter • May 10, 2022 • 259 Comments But the first upticks in delinquencies from breath-taking record lows are cropping up.
Holy-Moly Mortgage Rates Hit 5.64%, 10-Year Treasury Yield 3.12%, Long-Term Treasury Bond Fund Gets Massacred by Wolf Richter • May 7, 2022 • 306 Comments So the Fed Gets Ready to Walk Away from the Bond Market, and All Kinds of Stuff Happens.
Powell Confident in “Softish Landing” for the Economy, But We May Keep Inflation. Markets Can Figure Out their Own Landing by Wolf Richter • May 4, 2022 • 364 Comments Most Reckless Fed Ever on the move finally, biggest rate hike since 2000, QT next, but too little too late.
