Tag: quantitative easing

A More Hawkish Fed Is Not In The Cards This Year

A More Hawkish Fed Is Not In The Cards This Year

The U.S. Just Passed $1.9 Trillion In Debt-Funded "Relief". Now Is Not The Time For The Fed To Raise Rates. Yield Curve Control Is On The Horizon. Some expect the Federal Reserve to become more hawkish in the near-term. We don't see it. Not with $1.9 Trillion in new Government debt. The Fed will eventually … Continue reading A More Hawkish Fed Is Not In The Cards This Year

The Fed’s Next Move Is To Ramp QE, Not Raise Rates.

The Fed’s Next Move Is To Ramp QE, Not Raise Rates.

We have said it on our TEK2day Podcast and in conversations with some of you that the Fed's next move is to accelerate its QE effort to control long bond yields. This may occur as soon as this month. An interest rate hike is not coming this year in our view. There is far too … Continue reading The Fed’s Next Move Is To Ramp QE, Not Raise Rates.

Near-Term Consumer Price Inflation Risk Is Likely Low

Near-Term Consumer Price Inflation Risk Is Likely Low

Despite a record increase in the Money Supply (M2) the U.S. economy likely will not experience near-term consumer price inflation given less than robust Personal Consumption. Further expansionary monetary policy will increase price inflation risk, particularly if Personal Consumption continues to rebound. This story is most efficiently told with pictures and captions. Click on any … Continue reading Near-Term Consumer Price Inflation Risk Is Likely Low

The Fed Is Crowding Out Private Capital<span class="badge-status" style="background:red">Premium</span> 

The Fed Is Crowding Out Private CapitalPremium 

The Federal Reserve is crowding out private capital. It has engaged in what feels like perpetual quantitative easing ("QE") since 2008. The Fed buying corporate credit is the latest perversion from this increasingly political institution. Federal Reserve assets continue to grow pushing against the $7 Trillion mark. Fed assets could potentially cross the $10 Trillion … Continue reading The Fed Is Crowding Out Private CapitalPremium