As predicted here at MNE because they perhaps currently don’t have the cash flow to pay IOR at a higher policy rate with reserve balances so high…. Still have to see how it goes… but maybe… two observations from fintwit:
Brainard seems to be giving the balance sheet more emphasis
— Ed Bradford (@Fullcarry) April 5, 2022
Brainard surprised the market by saying that the max caps for QT will be reached within a "much shorter period" than last time. Hard to reconcile with Powell's hints at the press conference that the Fed won't surprise current expectations. No data shocks to justify the shift. pic.twitter.com/yzm5AkOjK3
— Roberto Perli (@R_Perli) April 5, 2022
Not unexpected to anyone here… but highly duplicitous as usual from these people if so… I don’t know why they wouldn’t just be transparent about their policy like normal technical people… hard to understand…🤔
6 comments:
Perhaps they need to do more research on transparency.
And why a pivot? Waltzing not applicable here?
Hand them another 100 million to research choreography.
I think pivot is the most common figurative language to describe what they literally appear to be doing
Given their technical competence, St. Vitus' Dance may be more accurate.
Well we have to see, they probably can impose a “hawkish” policy but the actions may not match the rhetoric….
This is first indication of that …. they were previously only talking about much higher rates now they are beginning to talk about much reduced reserve balances…
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