Tag: QE

The Fed’s “Not QE” Is Morphing into “QE4ever”

The Fed’s “Not QE” Is Morphing into “QE4ever”

Another week, another new and expanded repo market intervention by the Federal Reserve. On Thursday, the Federal Reserve Bank of New York intervened twice with fresh liquidity injections. Fed officials raised their offerings for overnight repos up from $75 billion to a staggering $120 billion. This comes on top of the $60 billion per month in Treasury bill purchases that will extend well into next year and possibly beyond. Over the past month alone, the Fed’s balance sheet has soared by $200 billion. You might think numbers like these should be quite alarming to investors and to anyone who holds U.S. dollars. But the strange thing about these Fed interventions […]

Continue Reading

“Baghad Jerome” Powell Denies the Fed Is Using Financial Crisis Tools

“Baghad Jerome” Powell Denies the Fed Is Using Financial Crisis Tools

Jerome Powell has something in common with Bagdad Bob, Saddam Hussein’s infamous press secretary. They’re both liars, suggests Money Metals podcast guest Craig Hemke of the TF Metals Report. Telling obvious lies with a straight face is part of Powell’s job description. He hopes to maintain order even though anyone who is paying attention knows something extraordinary is going on. When the Fed stepped into the “repo” markets at the end of September with hundreds of billions in short term loans for its owner banks, Powell stood out front telling everyone there is nothing to worry about. The Fed’s repo market lending was initially sold as a very temporary measure to […]

Continue Reading