g5000
Diamond Member
- Nov 26, 2011
- 140,378
- 100,722
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With inflation rising, the Federal Reserve decided not to raise or lower interest rates today at their first meeting with the new Chairman.
I guess they are waiting to see what the cessation of hostilities in the Middle East will do for inflation.
In response, yields surged in the bond market. In response to bond yields surging, the Dow crashed 500 points.
The world is beginning to doubt our ability to pay our debts.
New Fed chairman Kevin Warsh is a fiscal hawk, so he's walking a tightrope trying not to draw Trump's wrath.
From what I have been reading about Warsh the past few months, I think I might like him. In particular for his desire to shrink the Fed's balance sheet down to pre-2008 levels. This guy is not a fan of infinite quantitative easing.
Bully for him!
Warsh seems focused on price stability. In other words, curbing inflation over the Fed's second imperative of low unemployment. That's another, more important, tightrope.
It's a fine balance. Politicians like inflation because it leads to low unemployment and makes paying our debts easier. That's why we don't allow politicians to get their hands on the money-printing machine. We would have hyperinflation faster than you can say, "I'll lower grocery prices on day one!"
Inflation is killing savers and fixed-income citizens. Trump doesn't care about that. He desperately craves inflation.
The Fed indicated today that there will most likely be an interest rate hike in the cards before the end of 2026.
Buckle up!
www.cnbc.com
I guess they are waiting to see what the cessation of hostilities in the Middle East will do for inflation.
In response, yields surged in the bond market. In response to bond yields surging, the Dow crashed 500 points.
The world is beginning to doubt our ability to pay our debts.
New Fed chairman Kevin Warsh is a fiscal hawk, so he's walking a tightrope trying not to draw Trump's wrath.
From what I have been reading about Warsh the past few months, I think I might like him. In particular for his desire to shrink the Fed's balance sheet down to pre-2008 levels. This guy is not a fan of infinite quantitative easing.
Bully for him!
Warsh seems focused on price stability. In other words, curbing inflation over the Fed's second imperative of low unemployment. That's another, more important, tightrope.
It's a fine balance. Politicians like inflation because it leads to low unemployment and makes paying our debts easier. That's why we don't allow politicians to get their hands on the money-printing machine. We would have hyperinflation faster than you can say, "I'll lower grocery prices on day one!"
Inflation is killing savers and fixed-income citizens. Trump doesn't care about that. He desperately craves inflation.
The Fed indicated today that there will most likely be an interest rate hike in the cards before the end of 2026.
Buckle up!
Dow closes 500 points lower as Warsh’s first Fed meeting sets off surge in bond yields: Live updates
Wednesday's FOMC decision marks the first with new Fed Chairman Kevin Warsh at the helm of the U.S. central bank.
www.cnbc.com
