Remember: these moron unqualified libertarian people are capable of anything.
Like yesterday's abrupt change in reserve asset policy ending the planned $35b per month reduction in system reserve assets 2 months earlier than previously indicated.
Bank system now has to adjust (bearish) to arrange for inclusion of the additional $70b of these non-risk assets they will now have to possess.
Bank system currently only adding about $70b per month of total bank credit so this now additional $70b of non-risk assets the Fed is going to add to the system to probably (to these unqualified morons) to "lend out!" is going to displace about 1 month's total credit production for the system...
Accordingly the result of this surprise increase in non-risk reserve asset policy was immediately bearish for risk asset prices... we'll see how much over the next week...
Not good surprise policy change from Powell Fed; really screwed the banks (again)... we may start to see some criticism of Powell from more than just Trump.
The Fed also gave #Trump something else he has demanded in his unrelenting attacks: an early end to a policy known as "quantitative tightening" or QT.
— Qatar Tribune (@Qatar_Tribune) July 31, 2019
https://t.co/DdDRPgMUzD