Even Fed’s Lowest Lowball Inflation Measure Spikes Relentlessly: Parallel Isn’t 1982, but 1974, When Powell was in College by Wolf Richter • Dec 23, 2021 • 172 Comments But even the comparison to 1974 fails because back then, the Fed had already pushed short-term rates to 9%. Today: most reckless Fed ever.
End of Easy Money: Global Tightening in Full Swing, While the Fed Promises to Wake Up in Time Next Year by Wolf Richter • Dec 22, 2021 • 213 Comments Central banks jacked up rates to catch up with run-away inflation, but most fell further behind; only Russia caught up. The Fed didn’t even try.
Enough of this “Bond-Markets-Don’t-Buy-Hawkish-Fed’s-View” Nonsense: It’s the Fed’s Reckless Interest-Rate Repression by Wolf Richter • Dec 20, 2021 • 240 Comments Bond Markets will buy Hawkish Fed’s views just fine if the Fed stops buying bonds, period, and sells outright its TIPS, MBS, and long-dated Treasuries.
Powell: Everything’s Moving Much Faster, incl. End of QE, Balance Sheet Reduction, Rate Hikes by Wolf Richter • Dec 15, 2021 • 297 Comments Inflation now a “big threat.” After downplaying inflation all year, the Fed is starting to get serious.
Central Banks in Latin America’s Largest Economies Grapple with Raging Inflation: Brazil with Shock & Awe, Mexico Eyeing the Fed by Wolf Richter • Dec 9, 2021 • 182 Comments In the US, raging inflation is not far behind. But the Fed is still recklessly pouring fuel on it.
Powell & Brainard Suddenly Make Inflation #1 Priority in their Thank-You Statements by Wolf Richter • Nov 22, 2021 • 302 Comments Looks like the start of a U-Turn on inflation. 2-year & 10-year yields jump.
After Driving Corporate Bond & Junk-Bond Rally to Lowest Yields Ever, Fed Ends Bailout SPV with $513 Million Profit, Sends 90% to US Treasury by Wolf Richter • Nov 19, 2021 • 99 Comments By mid-September, the junk bond market started heading south.
Stock Market Leverage Spikes, Margin Debt Up 42% YoY. Fed Warns about High Leverage Ratio of “Younger Retail Investors” by Wolf Richter • Nov 18, 2021 • 165 Comments “Potentially Destabilizing Outcome could emerge if elevated risk appetite among retail investors retreats rapidly.” But what the heck.
Since 2008, Monetary Policy Has Cost American Savers about $4 Trillion by Alex J. Pollock • Nov 17, 2021 • 176 Comments After 13 years with on average negative real returns to savings, it is time to require the Fed to address its impact on savers.
Inflation Becomes a Political Bitch for Democrats as People’s Mood Sours amid Biggest Fed-Fueled Boom for the Wealthy by Wolf Richter • Nov 14, 2021 • 254 Comments Time to nominate some hawks to the Fed’s Board of Governors.
