Possible: they do the +0.25% in March to maintain precedent as they usually move the rate first…. THEN immediately turn all of their Fed bibble babble rhetoric to “quantitative tightening!” of $1.5T of “unprinting money!”… to “pull out the liquidity!”… to get the dummy monetarist inflationista psychos to finally STFU in the middle of a viral pandemic…
Then once the RRP balance goes to zero, it’s no longer a threat to catastrophic transfer to Depository asset accounts and they can get back to rate policy if needed… which if “inflation!” turns out transitory due to then waning real pandemic issues they won’t have to do much with rates…
BOSTIC SAYS FED COULD EASILY PULL $1.5 TRILLION OF "EXCESS LIQUIDITY" FROM FINANCIAL SYSTEM, THEN WATCH MARKET REACTION FOR FURTHER BALANCE SHEET REDUCTIONS
— First Squawk (@FirstSquawk) January 11, 2022
BOSTIC SAYS MARCH "REASONABLE" FOR FIRST INCREASE; RUNOFF OF BALANCE SHEET SHOULD BEGIN "SOON AFTER"
6 comments:
Exactly what I said months ago. They cannot raise rates and effectively hold at higher levels unless reserves are brought down in combination and kept at a low enough level to sustain the policy rate.
At least not within their current institutional framework.
They can if they get rid of the silly liquidity ratio which nobody else in the world seems to use.
Then the Fed holds the QE Treasury Bonds, and pays over the fraction of the interest they get from Treasury to the holders of the reserves created by discount against those Treasury Bonds.
As the short term Bonds roll over, the Fed would then get ever increasing income from Treasury as auction rates are driven up.
Not possible with Pocahontas on the warpath…
re: Canada's Pocahontas
Dr. Carrie Bourassa BA (Hon), MA, PhD
Professor Community Health and Epidemiology
Here's a short 1-minute YouTube video of her: Curb Your Carrie Bourassa
Question: Does Larry David produce these videos because they're funny?
From the Washington Post:
Canadian health expert who claimed to be ‘Morning Star Bear’ steps aside after Indigenous ancestry questioned
During a 2019 TEDx talk, Canadian academic Carrie Bourassa teared up as she described being surrounded by the spirit of her ancestors onstage.
“My name’s Morning Star Bear … ooh, I’m just going to say it, I’m emotional,” Bourassa said, to applause from an encouraging crowd. “I’m Bear Clan. I’m Anishinaabe Métis from Treaty Four Territory.”
Dressed in a vivid blue embroidered shawl and clutching a feather, Bourassa, who is one of Canada’s top experts on Indigenous public health, recalled a troubled childhood and growing up poor in a family afflicted by intergenerational trauma that she said caused “addictions and violence and disruptment and loss.”
Her sister outed her:
Tait said Bourassa's roots come from Eastern Europe, namely Russian, Polish and Czechoslovakia.
'I don't need to prove something I already know': Defiant Canadian race faker insists she IS indigenous after being suspended from government job when her SISTER revealed she was white
Well at least she wasn’t an anti-fraud crusader perpetrating decades long identity fraud….
Tinkerbell says I'm 9/10ths fairy dust.
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