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.
Fed Balance Sheet QT: -$1.53 Trillion from Peak, to $7.44 Trillion, Lowest since February 2021. The BTFP Plunged by $34 Billion by Wolf Richter • Apr 4, 2024 • 137 Comments Quantitative Tightening has removed 37% of Treasury securities and 27% of MBS that pandemic QE had added.
Fed’s Kashkari Says Quiet Part Out Loud: Maybe No Rate Cuts in 2024 if Inflation Continues to Move “Sideways” by Wolf Richter • Apr 4, 2024 • 107 Comments The stock market didn’t like that at all.
The Fed’s Liabilities: How Far Can QT Go? What’s the Lowest Possible Level of the Balance Sheet without Blowing Stuff Up? by Wolf Richter • Mar 23, 2024 • 242 Comments Reserves, Domestic ON RRPs, Currency in Circulation, the TGA, and official foreign RRPs determine how far QT can go.
What Powell Said About Slowing the Pace of QT: “By Going Slower, You Can Get Farther” by Wolf Richter • Mar 20, 2024 • 158 Comments They learned a lesson from the mess in 2019, which Powell referred to several times.
