The Institutional Risk Analyst

Our bet is that the Bessent "3-3-3" plan likewise will be a failure and that the Fed will be forced to restart QE sooner rather than later

Baring some emergency, the Fed seems on track to keep interest rates at current levels indefintely.

The Powell Fed needs to drop short-term interest rates back down to 4% and leave them there indefinitely.

By any reasonable standard, Janet Yellen should have already resigned, but not in the strange world of Washington.

Last week not a single member of the Big Media managed to ask Fed Chairman Jerome Powell about the state of the US banking system

If the Fed causes another liquidity crisis as it ends QE and shrinks the balance sheet, then Chairman Powell should immediately resign.

If you consider QE “stimulus” inflationary, then Fed policy actually accelerated inflation in the November-January period.

The Powell FOMC has lost all credibility when it comes to financial markets or managing inflation and independence from the US Treasury

Look for the FOMC to act early and go big in terms of forward repurchase agreements at the first sign of liquidity stress.

When you hear people talking about the Fed tapering QE next year, you know they are behind the proverbial curve.

Each burst of liquidity provided by the FOMC in response to a major externality creates the conditions for the next financial crisis