Fed

Luke Gromen: The Fed Has No Good Options Right Now As Yields Rise And Deficits Explode

One of the biggest questions right now, especially as yields climb as Joe Biden promises trillions of dollars in additional COVID-19-inspired stimulus spending, is when the Fed and the Treasury, soon to be run by Janet Yellen, will conspire to stop the rise in yields and stave off another eruption of market chaos. With US…

The Fed Sent $838 Billion in "Profits" To The Treasury In Past Decade

On Monday, the nexus of reserve currency helicopter money, the Federal Reserve, announced that it had sent $88.5 billion in so-called “profits” (i.e., interest income from all those bonds it “purchased” after creating digital money out of thing digital air) to the U.S. Treasury Department in 2020, a 61% increase from the previous year as…

Eurodollar Curve Chaos As Fed Does "Full 360 Degree" In Tapering Debate

As Deutsche Bank’s Jim Reid writes in his EMR report, “the big theme yesterday was a big intraday swing in rates as the European session saw yields rise everywhere but with this more than reversing late in the US session.” The rally back seemed to start just ahead of the latest Treasury auction and accelerated…

Fed Returns $42 Billion To Treasury For Terminated Emergency Programs

At the end of 2020, Steven Mnuchin created a mini media tempest (in a teapot) when he demanded that the Fed return tens of billions in unused funds backstopping the central bank’s various emergency, 13(3) programs. While the news spark a mini furore in financial circles and in Congress where reps and Senators scrambled to…

FOMC Minutes Show Fed Discussing 2013-Like Taper To Bond-Purchases

Two days after Atlanta Fed President Raphael Bostic says the central bank might taper its bond purchases later this year if the distribution of vaccines boosts the U.S. economic outlook. “I am hopeful that in fairly short order we can start to recalibrate,” Bostic said in an interview with Reuters Monday “If we determine things have strengthened…

Will The Fed Destroy The Dollar?

Authored by Adam Taggart via PeakProsperity.com, The Federal Reserve’s official target rate of inflation is 2% per year. Put another way, that means that if the Fed hits its target, the value of today’s dollar will only be worth around a third of its current value in 50 years. Think that can’t happen? It already…

Will The Fed Lose Control In 2021?

Authored by Alasdair Macleod via GoldMoney.com, The most important event in the new year is likely to be the Fed losing control of its iron grip on markets. The dollar’s declining trend is already well established against other currencies and commodities, leading to this outcome. Events in 2021 will be the consequence of a developing…

"People Are Fed Up": California Out Of Excuses As Coronavirus Defies Militant Lockdowns

California’s response to COVID-19 ranks slightly below China welding people inside apartment buildings in terms of militancy, yet the for all the measures taken by the Golden State, it’s become one of the nation’s worst epicenters for the pandemic, according to Politico. Registered Nurse Allison Shiftar puts on protective glasses as she gets ready to…

On Yellen's "Arranged Marriage" To The Fed

On Yellen’s “Arranged Marriage” To The Fed Tyler Durden Sat, 12/19/2020 – 14:30 …by the end of her term as Treasury Secretary, the economy, and the markets, will be littered with corpses of more “monetary policy errors”…

What Would Happen If The Fed Ceased To Exist?

Authored by Charles Hugh Smith via OfTwoMinds blog, Extremes get more extreme until risk breaks out; then the reversal will be as extreme as the bubble expansion. What would happen if the Federal Reserve ceased to exist? We all know the answer: global markets would instantly collapse and the global financial system, now entirely dependent on…

Dollar Drops As Gold & Crypto Pop On Fed Flop, Washington Slop

Close to close prices hide what was a very noisy day in the markets with bonds, the dollar, and the broadest stock index flat-ish until some last minute malarkey. Headline hockey between The Fed “flop” – not delivering the QE Twist that so many had hoped for (but promising more will come) – and the…

Fed Leaves All Policies Unchanged, Will Keep QE Until “Substantial Further Progress” Made

Since the last FOMC Statement on November 5th (right after the election and as the vaccine headlines hit), stocks have screamed higher led by inflation-sensitive small caps… Source: Bloomberg But it is Bitcoin that has really screamed higher (up36%) since the November Fed (with Gold, the dollar, and bonds all down around 2-3%)… Source: Bloomberg…

Global Stocks Hit All Time High On Stimulus Optimism Ahead Of Fed Meeting

Another overnight session, and – predictably – futures are higher in keeping with the most glaringly obvious market trend since 2016 of stocks surging during overnight US trading (while trading flat in regular trading hours)… … alongside world stocks which rose to a fresh record high on Wednesday ahead of today’s Fed meeting – the…

MBA Applications Surge Despite Fed Defiling All Economic Laws As We Know Them

Who in their right mind would want to be an MBA in this environment? That’s the first question that came to our minds when we found out that MBA application volume was surging. Thanks to vast distortions in both capital markets and the economy brought on by the Fed rigging interest rates and introducing limitless money…

The 2021 Liquidity Supernova: Step Aside Fed – US Treasury Will Unleash $1.3 Trillion In Liquidity

One of the most poignant (and painful to some) lessons of the past decade – especially to contrarian, bearish investors such as Odey and Horseman – is that the Fed can keep print money far longer than any short can remain solvent. And while it was considered in poor taste until earlier this year to…

2021 Would Be A Great Time To Audit The Fed

Authored by Nick Hankoff via The Mises Institute, Gone are the days of the Federal Reserve hiding in the shadows. Now it’s a woke central bank fighting for climate and racial justice. Progressives must not fall for this but instead team up with the populist right to audit the Fed and demand transparency. Let the…

Stocks Give Thanks For Fed Liquidity As Dollar, Gold, & Bitcoin Dumped

Greed, Greed-er, and Greed-est… Source: CNN This level of extreme greed didn’t end well last time. Interestingly, as the week progressed, Nasdaq caught up with Small Caps early-week outperformance, stalling the ‘rotation’ trend. The Dow was the week’s laggard but still managed solid gains… As a reminder, the recent vaccine headlines have put global and…

The Fed Has No Way Out

The Fed Has No Way Out Tyler Durden Wed, 11/18/2020 – 11:20 Via SchiffGold.com, We have argued that the Federal Reserve has no exit strategy from this extraordinary monetary policy. In fact, it never could extricate itself from the extraordinary monetary policy it launched during the Great Recession. Today, we’re merely witnessing the same policy on hyperdrive….

Is The Fed Stuck With “Forever Stimulus”?

Authored by Lance Roberts via RealInvestmentAdvice.com, I recently have discussed both the “Importance of Recessions” and how the ongoing “Rescues Ruining Capitalism.” However, while the data is clear that ongoing stimulus programs lead to weaker economic growth and a rising wealth gap, is the Fed stuck with “forever stimulus?” Such was a point that Mohammed El-Erian recently made, stating: “They…