yield curve inversion seems tohave been averted .... that's good
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Onwards & upwards?
https://www.newshub.co.nz/home/money...y+6+April+2022
Fed officials plan to shrink the balance sheet by $95 billion a month, meeting minutes indicate
https://www.cnbc.com/2022/04/06/fed-...meetings-.html
here's some more commentary on why the fed is not your friend now
If Stocks Don’t Fall, the Fed Needs to Force Them
Investors should pay closer attention to what Powell has said: Financial conditions need to tighten. If this doesn’t happen on its own (which seems unlikely), the Fed will have to shock markets to achieve the desired response. This would mean hiking the federal funds rate considerably higher than currently anticipated. One way or another, to get inflation under control, the Fed will need to push bond yields higher and stock prices lower.
https://www.washingtonpost.com/busin...fb4_story.html
yep makes perfect sense , force asset markets down or should i say all markets . people stop spending as the wealth effect dries up and bingo supply chains start to free up and some of the inflation goes away. hey dont need to increase rates as much.
im sure its more complicated than this with many more variables to complicate things so probably wont be this simple
I listened to a podcast today and they discussed how the Fed is going to talk tough on rate hikes but not actually be tough with rate hikes.
Reason being is because the US needs inflation to help reduce their massive debt pile (relative to GDP and the tax take).
So could be a long period of high inflation and negative real rates.
Where is the best place to buy gold coins? Lol