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If the stock market is down or bad economic data prints, one can always assume President Trump will make time out of his day to bash the Federal Reserve on Twitter.
They're like Superman, but for financial literacy.
The institution known for being a staunch supporter of easy monetary policy has just realized that things are getting tricky.
QE4 Officially Begins: Fed's First T-Bill Purchase Is 4x Oversubscribed Amid Massive Liquidity Demand
As it pre-announced last Friday, the Fed will resume QE by purchasing $60billion/month in bills at least until 2Q 2020 starting on October 17.
The Federal Reserve will be adding assets to its balance sheet again, but Powell insists it's not "quantitative easing"...
Let's keep it simple shall we: 2019 remains a battle for control. The forces of intervention want to "extend the business cycle" as Jerome Powell likes to frame it by any means necessary and, as I outlined yesterday (Beginning of the End), they
While the financial intelligentsia debates whether the Fed's just announced plan to restart POMO with the purchase of T-bills at an initial pace of $60BN per month...
Myrmikan's May letter discussed how the Fed had already begun to ease financial conditions, though the method was so subtle that few understood what the central bank was doing.
The Fed began offering repo loans last month after a shortage of available cash in the financial system led rates to climb
Desperation continues at the Fed. They're expanding their balance sheet (again), but denying that it's QE, despite the fact that they've added almost $200 billion to their balance sheet in just a matter of days. Fed Chair Powell is also out-and-about
Having cracked down on Deutsche Bank in the past, The Fed appears to be playing good-regulator/bad-regulator as The FT reports that Deutsche is expected to benefit most from an imminent change in The Fed's liquidity rules.
The need for the Fed to shove billions into the repo market to keep that market's interest rate near the Fed's target shows the Fed is losing its power to control the price of money.
Update: Fed Chair Powell appears to have announced QE4 (but do not call it QE4!):
Following Fed Chair Powell's surprising announcement today that the Fed was resuming Permanent Open Market Operations after a 5 year hiatus, just as we said last month that it would (see "The Fed Will Restart QE In November: This Is How It Will Do It
JPMorgan expects the Fed to ease rates again in October.
John Sneisen and Tim Picciott CFP® CRPC® breakdown the shadow QE efforts the FED is employing to hold the economy together. They also discuss the effect share buybacks have had on the market and how some companies like GE have wasted Billions in p
Since September 17, the Federal Reserve Bank of New York has pumped billions of dollars into the repurchasing (repo) market, the first such intervention since 2009. The Fed has announced that it will continue to inject as much as 75 billion dollars a
Former Fed officials said the Fed should do $250 billion in repos to alleviate the funding crisis.
Anyone who expected that the easing of the quarter-end funding squeeze in the repo market would mean the Fed would gradually fade its interventions in the repo market...
Wacky races to the bottom In monetary policy terms, this is now clearly a race to the bottom.
The Federal Reserve is once again secretly shelling out trillions of dollars in the dark, while Congress willingly looks the other way. In other words, the central bank has initiated a replay of the 2007-2010 financial crisis.
Update: Step away from the panic button (at least until tomorrow). Moments after the Fed announced that its second, expanded $60BN term repo came in oversubscribed (see below), the results of the overnight repo were also announced, and they sugges
Update (1125ET): Following the major 'over-subscription' for liquidity this morning, NYFed has decided to dramatically increase the scale of its bailout for both overnight and term repo:
Imagine approaching a friend that you think is very wealthy and asking her to borrow ten thousand dollars for just one night.
Update: Half an hour after the NY Fed announced that its first $30BN term repo operation was more than 2x oversubscribed
Peter Schiff has been saying that the price of gold and silver are going to take off.
It doesn't get more pathetic than this. After the Fed's "disappointing" 25 basis point rate cut, divided FOMC vote and failure to guarantee more cuts just around the corner, Pusillanimous Powell saw the markets barfing and therefore stumbled
One of the most vital pieces of plumbing that powers the global financial system usually runs so smoothly that it gets overlooked by market watchers.
After announcing a barrage of emergency liquidity operations announced by the Fed late on Friday, including daily overnight repo ops, as well as three $30BN term repos to provide funding across quarter end -
