Cleveland Fed’s Underlying Inflation Measure Hits 3.0%, Hottest in the Data.
Ending the repo market blowout and un-inverting the yield curve.
The repo blow-out — whoever instigated it — comes in real handy.
I wish I could have sat in that meeting, watching the bewildered faces of Fed officials as they got hourly updates on repo rates blowing out.
Fed Sent Big-Fat Message on “U.S.-China Trade Tensions” to White House.
Meanwhile, the Fed relentlessly sheds MBS, replacing them with Treasuries, including short-term Bills.
If the US dollar loses its hegemony as a global reserve currency, it would be a sea change globally, and specifically for the US economy. Today, we got the next installment in that saga.
The hullabaloo in the repo market torpedoed the function of Interest on Excess Reserves and forced the Fed to go back to the future.
The Fed has different priorities than the ECB, the Bank of Japan, the Swiss National Bank, et al.
What would the Fed do if economic factors were all it looked at?