Bessent Blasts the Fed for QE, its “Perverse Incentives” for Fiscal “Irresponsibility,” “Wealth Effect” Policies, “Class and Generational Disparities,” Failure on Inflation… Oh I So Agree by Wolf Richter • Sep 5, 2025 • 216 Comments “This harmful cycle concentrated national wealth among those who already owned assets”: Bessent.
Fed Balance Sheet QT: -$39 Billion in August, -$2.36 Trillion from Peak, to $6.60 Trillion by Wolf Richter • Sep 4, 2025 • 42 Comments Compared to the size of the economy, the Fed’s assets are now down to 21.8% of GDP, where they’d first been in 2013.
ON RRPs Drop to Near-Zero $17.9 Billion, Liquidity Flow into Markets Over, while TGA Refilling Drains Liquidity from Markets by Wolf Richter • Sep 3, 2025 • 59 Comments Liquidity now begins to drain out of the markets for the first time since the debt ceiling.
30-Year Treasury Yield Stuck Near 5% on Inflation Fears, but 6-Month Yield Drops, Sees Rate Cuts, Long End of Yield Curve Steepens a Lot, Mortgage Rates still over 6.5% by Wolf Richter • Aug 30, 2025 • 129 Comments The bond market’s reaction to cocktail of inflation fears, potentially lax Fed, and Mississippi River of new debt flowing into the market.
Powell Makes Room for Rate Cut. Fed Kills “Average Inflation” Targeting that Caused so Much Damage when Inflation Raged by Wolf Richter • Aug 22, 2025 • 161 Comments Fed to “proceed carefully” with changes to policy stance amid heavy concerns about rising inflation.
Government Sold $724 Billion of Treasuries this Week, Debt Hits $37.0 Trillion. Getting Ready for the Fed’s Shift to T-Bills by Wolf Richter • Aug 8, 2025 • 124 Comments 10-year and 30-year yields rose after rough auctions, despite huge issuance of T-bills to take pressure off long-term yields.
Fed Balance Sheet QT: -$19 Billion in July, -$2.32 Trillion from Peak, to $6.64 Trillion by Wolf Richter • Aug 7, 2025 • 42 Comments The ratio of the Fed’s assets to GDP dropped to 21.9%, lowest since Q4 2019 and back where it had been in 2013.
Slowing Supply of Immigrant Labor & Slowing Job Growth Keep the Job Market “in Balance” and the Unemployment Rate Low, Push Up Wages. Powell Talked about It by Wolf Richter • Aug 1, 2025 • 138 Comments The Fed’s dual mandate is “stable prices and maximum employment, not so much growth” in employment, he said at the press conference.
PCE Inflation Accelerates in Services and Goods. What Powell Is Waiting For by Wolf Richter • Jul 31, 2025 • 91 Comments Not everything rose. Prices fell for new vehicles, auto parts, auto accessories, and phones.
The Fed, Torn by Two Governor Dissents, Sticks to Wait-and-See, Keeps Rates at 4.25%-4.50%, Frets about Uncertainty by Wolf Richter • Jul 30, 2025 • 115 Comments “Uncertainty about the economy outlook” is back in full force in today’s statement, after it had “diminished” at the last meeting. QT continues.
