US CPI inflation 7%. Highest in 40 years! Real earnings down by 2.4%. The Fed is still running an extremely aggressive monetary policy.

BREAKING: U.S. inflation hits 7%, highest in 40 years pic.twitter.com/oumNsoCsca — Javier Blas (@JavierBlas) January 12, 2022 https://twitter.com/NorthmanTrader/status/1481264500519194627 #Fed Balance Sheet @ $9 trillion UNSUSTAINABLE !!!! pic.twitter.com/kf9znIB9b3 — MrTopStep (@MrTopStep) January 12, 2022 Inflation is running at 7% and the …

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I think OCC’s report provides an expectation for a +100bps (+1%) interest rate hike. All of their models showing smallest largest losses for banks will occur when +1% increase in interest rates. Except for the big boys with >$10B, which would lose less with +300bps (+3%) in interest rate.

by laflammaster Caption: All Banks https://www.occ.gov/publications-and-… Caption: <100M in assets https://www.occ.gov/publications-and-… Caption: >=$100M, <$250M https://www.occ.gov/publications-and-… Caption: >=$250M, <$500M https://www.occ.gov/publications-and-… Caption: >=$500M, <$1B https://www.occ.gov/publications-and-… Caption: >=$1B, <$10B https://www.occ.gov/publications-and-… Caption: >$10B https://www.occ.gov/publications-and-… Caption: National Banks https://www.occ.gov/publications-and-… Caption: Stock FSAs https://www.occ.gov/publications-and-… Caption: Mutual FSAs …

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Entirely possible that we’ll see low interest rates forever, asset manager says [Alternative: economic & financial systems so fragile now that next crisis causes systemic collapse]

https://www.cnbc.com/2021/11/15/gam-entirely-possible-that-well-see-low-interest-rates-forever.html Interest rates could remain at their record lows “forever,” according to one asset manager, despite a recent rush to normalize policy by many of the world’s central banks. GAM Investments’ Julian Howard told CNBC’s “Squawk Box Europe” last week …

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The Shadow Knows! The Xu-Xia Fed Shadow Rate Is -1.7021% (US Effectively Has Negative Interest Rates And Inflation Is Expected To Continue And NOT Be Transitory)

by confoundedinterest17 The Shadow Knows! Wu-Xia employs an approximation that makes a nonlinear term structure model extremely tractable for analysis of an economy operating near the zero lower bound for interest rates. It can be used to summarize the macroeconomic effects …

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