Posted on 03/22/2023 11:14:00 AM PDT by Kaiser8408a
As expected, The Federal Reserve raised their target rate (upper bound) to 5%, up 25 basis points. At the same time, Fed Reverse Repo useage soared to $2.28 trillion as banks hide from inflation.
Here is today’s Fed FOMC decision.
The Fed’s DOTs project looks like a ski slope with rates lower over the next few years (return of QE??)
Treasury Secretary Janet “The BIG Statist” Yellen loves Modern Monetary Theory (MMT).
(Excerpt) Read more at confoundedinterest.net ...
Punish individuals for gubmint spending profligacy.
I just looked at that article and its graphs and came away with no idea of what they did, could someone put this in laymens terms for me?
For those who do not know, “Reverse Repo” from the Fed’s perspective is adding liquidity to the financial system. The Fed makes loans to banks against good collateral (US Treasuries) for short time periods while the financial system is jittery after the Silicon Valley Bank failure last week. These transactions do run counter to the direction of the interest rate increase, but are not directly offsetting. They help the banks while at the same time raising the cost of funds in order to slow financial activity.
They are saying two more increases, a pause, and up to three cuts next year.
Just enough to say they are fighting inflation. Then the pause sends us into recession. They they ride in like cowboys, stimulating into the election.
They’re only about 1/2 to 1/3 of where they need to be. In other words they are chickening out. They’re going to ride the inflation change, savers be damned.
Bingo
I’ve written this before and I will write it again. Interest rate hikes alone will not fix inflation. There needs to be coordinated action to massively cut government spending, reduce regulation, fix the tax code, and interest rates hikes. Additionally, the Fed must cease bailing out banks. All of the current policies are pumping money into the economy or reducing productivity.
There are some that benefit from current policies. You and I are not included in that. It is time to pick sides. It really is a us versus them situation. Do you want more economic pain? Or do want someone else to feel and deal with that pain, like those creating this economic mess? No matter what there is going to be pain and it will increase. This isn’t a situation that is getting better.
Attacking the roots of the problem is the most effective solution. Until there are millions of lazy ass government employees standing in the unemployment line, government spending will increase and regulations will increase. As long as the Fed bails out banks, there will be no consequences to woke bank executives. The Fed window needs to be closed. These eff’n morons are adding tens of billions in ‘liquidity’ to banks and the economy. Liquidity is money. The Fed is back to quantitative easing. That’s printing money.
These pieces of excrement expect you to pay via increased inflation. Inflation is a regressive tax.
Thank you very much.
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