Disruptions “might linger for longer and might have larger or more persistent effects on prices and wages than they currently assumed.”
The Fed is a laggard, now discussing when and how to taper QE. The ECB is an even bigger laggard, as inflation begins to rage.
Giant sucking sound of cash.
According to “Bubble Ranking” by Bloomberg Economics.
How the “Wealth Effect” benefits Americans individually.
Modern-hawkish, not Volcker-hawkish.
“So far so good. But we have to be nimble here, these are big numbers.”
Yesterday, the Fed raised its interest rate on overnight reverse repos, and this morning, a giant sucking sound of cash.
With inflation hotter than it expected, the Fed is trying to slow the pace at which it’s falling further behind.
A massive source of liquidity is approaching peter-out moment.