Fed Sees Only 1 Rate Cut in 2024, Holds Rates at 5.50% Top of Range, QT Continues at Slower Pace as Announced in May by Wolf Richter • Jun 12, 2024 • 126 Comments Higher for longer becomes formalized one meeting at a time, as projections for “longer-run” federal funds rate keep getting raised.
Fed Balance Sheet QT: -$107 Billion in May, -$1.71 Trillion from Peak, to $7.26 Trillion, Lowest since December 2020 by Wolf Richter • Jun 6, 2024 • 149 Comments Quantitative Tightening has removed 40% of Treasury securities and 28% of MBS that pandemic QE added.
How Home Purchases and Rentals Are Key to Bringing Down Inflation: Fed Vice Chair Jefferson Explains by Wolf Richter • May 20, 2024 • 307 Comments Fascinating: “Prices that families pay” when they buy homes “can affect their overall well-being.”
The Reasons the Fed’s Bowman is “Willing” to Hike Rates if “Data Indicate Progress on Inflation Has Stalled or Reversed” by Wolf Richter • May 5, 2024 • 103 Comments She nails it with her list of inflation-fueling factors. It parallels what Powell said more softly at the press conference.
Fed Balance Sheet QT: -$1.60 Trillion from Peak, to $7.36 Trillion, Lowest since December 2020 by Wolf Richter • May 2, 2024 • 209 Comments Quantitative Tightening has removed 38% of Treasury securities and 27% of MBS that pandemic QE had added.
Oh Deary, Where Did my Rate Cuts Go? Fed’s Wait-and-See Now Entrenched? And Suddenly Lots of Talk about “Rate Hikes” by Wolf Richter • May 1, 2024 • 166 Comments What Powell Said about rate hikes, no rate cuts, rate cuts, and the QT slowdown while getting rid of MBS entirely.
Fed Holds Rates at 5.50% Top of Range, QT Slowdown Starts in June, Acknowledged Inflation is a Problem Again by Wolf Richter • May 1, 2024 • 193 Comments New language: “In recent months, there has been a lack of further progress toward the Committee’s 2 percent inflation objective.”
Fed’s Liabilities and QT: as ON RRPs Plunge toward Zero, Operating Losses Begin to Decline by Wolf Richter • Apr 19, 2024 • 88 Comments After ON RRPs go to zero, reserves will decline, further reducing the Fed’s interest expenses and losses. But it’s not straightforward.
What Jamie Dimon Said about Long-Term Inflation, Fed Interest Rates (“2% to 8% or even more”), and QE/QT (it’s Risky) by Wolf Richter • Apr 8, 2024 • 150 Comments “Rates have been extremely low for a long time — it’s hard to know how many investors and companies are truly prepared for a higher rate environment.”
10-Year Yield Hits 4.40% as Bond Market Begins to Adjust to Higher Forever: Higher Rates and Higher Inflation by Wolf Richter • Apr 5, 2024 • 204 Comments Suddenly lots of talk the 10-year yield will revisit 5%, which is funny just a few months after Rate-Cut Mania.
