Federal Reserve Folly

by John Mauldin Great news: The US economy is officially out of recession. We know this because the National Bureau of Economic Research’s official recession-calling committee said so this week. The economy has been in an expansion phase since last April, making this …

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Release The Kraken! China Cuts Reserve Ratio By 0.5% Releasing 1 Trillion Yuan In Liquidity To Boost Economy (Europe Has 20 Nations With Negative 2Y Sovereign Yields)

by confoundedinterest17 Release the Kraken! The People’s Bank Of China announced it is cutting its Required Reserve Ratio by 0.5% for most banks, a move that will unleash about 1 trillion yuan ($154BN) of long-term liquidity into the economy and will be effective July 15. …

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Barron’s: Investors are calling the Federal Reserve’s bluff. “We don’t believe you,” the futures market is effectively telling the Fed

https://www.barrons.com/articles/stock-market-hawkish-fed-51624052659 The Federal Open Market Committee’s latest policy communications raised more questions than answers. Perhaps the biggest one: Can the Fed ever really raise interest rates? ​ At face value, and with a big dose of relativity, this past week’s …

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Fed Reserve Chair Powell: Cryptocurrencies Not Convenient for Payment Due to Swings in Value, Central Bank CryptoCurrency May Be Coming

https://twitter.com/disclosetv/status/1395441828430745602 The Fed this summer will take another step ahead in developing a digital currency The Federal Reserve will release a research paper this summer that explores a move to a central bank digital currency. The moves of multiple countries, …

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Federal Reserve’s Bizarre Mortgage-backed Securities (MBS) Purchase Strategy With Ultra-low Available Housing Inventory (Housing Bubble Preservation?)

by confoundedinterest17 Chairman Powell, tell me why The Federal Reserve is buying so much agency mortgage-backed securities (MBS) while there is a dearth of available housing inventory? Especially when home prices are growing at 12.2% year-over-year? Mortgage rates were already falling starting …

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