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Strategies & Market Trends : US Inflation and What To Do About It -- Ignore unavailable to you. Want to Upgrade?


To: ggersh who wrote (1142)10/7/2019 3:29:53 PM
From: RetiredNow  Read Replies (1) | Respond to of 1504
 
Looks like the Fed has launched stealth QE, but there seems to be no major alarm at this. If the economy was doing ok, why do we need stealth QE? I think it's related to the repo funding shortages that drove short rates in the repo market sky high recently. That is a symptom of stress in the markets, which typically stems from recessionary conditions. Many, many indicators are telling us to be careful now. BTW, below are the last few weeks of the Fed's balance sheet levels...it started to go up (meaning active QE) right around the time the repo markets started to go haywire. Not a coincidence.

28-Aug-20193759946
4-Sep-20193761508
11-Sep-20193769673
18-Sep-20193844695
25-Sep-20193857715
2-Oct-20193945831