Wednesday, January 29, 2020

Trump still hammering Fed


Trump still advocating for a competitive "Full Japan" policy... ie zero rates and then QEmax to "pay off" the debt...

He'd have to figure out a way to get rid of Powell and most of the FOMC to get this...  maybe if the Fed loses control of the policy rate again (like they did in September) he could gain cause to fire them all... ie two strikes and youre out...

Treasury would have to rapidly increase the TGA from its current cycle high balance to get that...  not seeing that in the cards currently...