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Macro Tourist: The Fed Has Now Created A Financial Crisis Â
Read more from The Macro Tourist
I want to take you back to 2018. At the time, Powell was just a few months into the job, and "gosh darn it!", he was going to show the market who was boss. So he was hawkish. More hawkish than the market had seen in over a decade.
Don't believe me? Have a look at the 2-year TIP yield.
At first his hawkishness felt great. Trump had just cut taxes, so the American economy was humming along nicely. After all, the rest of the world
Perfect time for the Fed to restart their Bond SELLING program and sell what everyone seems to want to own at record LOW Interest rates. Will they do that? Nope they will Buy more and push rates even lower So Sad and in my opinion a waste of a crisis.
Jeffrey Snider made the call long before others.
Why does it always seem that an increasingly larger snowball is being pushed up the hill in service of debt?
Great article. Well worth the price to hear your views. Question is at this point, what is actionable in your analysis? Very simple minds, like mine, would enjoy hearing what next!?