These Crazy Rallies on Hawkish Fed Plans Are Good Because Crashing Stocks & Seizing Credit Markets Would Cause the Fed to Wobble in its Inflation Crackdown by Wolf Richter • Nov 30, 2022 • 138 Comments There was a time when markets tried to force the Fed’s hand by crashing.
The Fed’s Liabilities under QT: November Update by Wolf Richter • Nov 27, 2022 • 105 Comments Total liabilities dropped by $344 billion since QT began. Big shifts between liabilities: reserves already plunged by $1.12 trillion.
Fed’s Balance Sheet Drops by $289 Billion from Peak: November Update on Quantitative Tightening by Wolf Richter • Nov 3, 2022 • 219 Comments We also keep an eye on Primary Credit and look at the Fed’s deal with the Swiss National Bank.
Fed Hikes 75 Bpts to 3.75-4.0%, Pivots Even More Hawkish: “Very Premature to Be Thinking about or Talking about Pausing.” Markets Tank by Wolf Richter • Nov 2, 2022 • 230 Comments “What I’m trying to do is make sure our message is clear: we think we have a ways to go,” Powell said. “Rates have to go higher and stay higher for longer.”
Return of the Bond Vigilantes Sent Shockwaves Around the Globe by Wolf Richter • Oct 18, 2022 • 104 Comments Deficits didn’t matter – until raging inflation brought the bond vigilantes back to life.
Fed’s QT: Total Assets Drop by $206 Billion from Peak by Wolf Richter • Oct 6, 2022 • 111 Comments What the Fed did in details and charts. And, well, “Primary Credit” is starting to show up again.
Fed’s Favored Inflation Index Says: Underlying Inflation Just Isn’t Slowing Down at All by Wolf Richter • Sep 30, 2022 • 140 Comments Everyone wants to know when inflation is finally going to cry uncle.
My “Wealth Disparity Monitor”: QT, Rate Hikes, Dropping Stocks & Bonds Reduce Outrageous US Wealth Disparity by Wolf Richter • Sep 26, 2022 • 293 Comments Wealth of the “Top 0.1%” drops by $12 million per household; the wealth of the “Bottom 50%,” who have nearly nothing, rises.
Powell’s Whatever-it-Takes Moment: Policy “WILL Be Enough to Restore Price Stability.” Fed Hikes by 75 Basis Points. Shocker, Sees 4.4% by End of 2022 by Wolf Richter • Sep 21, 2022 • 286 Comments “Housing market will have to go through a correction … to where people can afford housing again”: Powell
The Fed Stopped Buying MBS Today. by Wolf Richter • Sep 16, 2022 • 235 Comments The purpose of MBS purchases was to repress mortgage rates and inflate home prices. That process has already started to reverse.
