TEK2day

Operating at the Intersection of Technology and the Capital Markets

    Tag: QE

    • Will The Fed Hike On Wednesday? Who Cares?

      The Fed Has Already Lost Control Of The Long End Of The Yield Curve The Fed’s monetary policy has been wrong since it kicked off QE in 2009. If the Fed holds rates steady on Wednesday, and if CPI continues to grow sequentially at a rate similar to August and September, then it is likely…

    • The Consumer Wage Squeeze

      Consumer wages have been squeezed by higher prices for goods and services for over two years. That price inflation was the result of the fiscal spending under the Trump and Biden Administrations combined with the Fed’s subsidization of that spending as well as the Fed’s foolish Quantitative Easing (“QE”), program. I don’t see how the…

    • Weekly Update: Bank Term Funding Program

      Absent this Bank Term Funding Program bailout the U.S. banking system would be self-correcting at a much more rapid pace. This $2 Trillion bailout creates moral hazard in the same way that 13 years of QE did, which is to say that QE created an Executive class of Commercial Bankers who do not know how…

    • Weekly Update: Bank Term Funding Program

      With or without further rate hikes by the Fed more bank failures are coming as is more consolidation. In a free market economy I would fully expect non-bank acquirers such as Apple and Amazon to step into the breach and build a financial services powerhouse. However, this FTC won’t allow the large Tech players to…

    • The Fed’s Balance Sheet Reduction (QT) Update

      The Fed’s Balance Sheet activity was negligible this week. The Fed’s QT effort over the past year-plus really has been weak in comparison to its over-the-top QE effort. At the end of the day, the Fed likes inflation as it helps inflate our $32 Trillion in Treasury debt away. Goodness knows Washington is incapable of…

    • Weekly Update: Bank Term Funding Program

      FEDERAL RESERVE statistical release: https://www.federalreserve.gov/releases/h41/current/

    • Weekly Update: Bank Term Funding Program

    • Weekly Update: Bank Term Funding Program

      FEDERAL RESERVE statistical release: https://www.federalreserve.gov/releases/h41/current/

    • Weekly Update: Bank Term Funding Program

      From the Fed: “On May 1, 2023, the California Department of Financial Protection and Innovation closed First Republic Bank and appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. For purposes of the H.4.1, the Federal Reserve’s outstanding lending to First Republic Bank at the Discount Window and through the Bank Term Funding Program are…

    • One More Rate Hike. Then What?

      Consensus is that the Fed will hike its Fed Funds rate by 25 BPS on Wednesday and then pause rate hikes as the Fed observes economic data for an undetermined period of time. The Fed ought to leave the door open for more rate hikes including a rate hike in June.