Fed boss J Powell raised rates again this week, despite the backdrop of bank failures and tightening credit. Is this the end of the Fed put?
Macroeconomics: Global Central Banks News & Highlights
The ‘Stealth Pivot’
What a week! Another exciting mix of the absurd, the ominous, and the sublimely ridiculous. Most likely, the Fed will publicly announce another rate increase this week…and continue with its inflation agenda, without mentioning it.
Hunting Icebergs
The middle class is getting attacked on both flanks. Its wealth falls along with house prices. And its real income falls as consumer prices rise. Adjusted for inflation, wages have fallen for 23 months in a row; for nearly two years, ordinary households have gotten poorer.
The Fed’s Magic Elixir
The second largest…and third largest…bank failures in US history continue to dominate the financial headlines. From CNN Business: ‘Dow falls 500 points as banking fears spread’.
Bank Canaries Drop Dead, but Don’t Worry, They’re Only Small…
Banks are sitting on vast unrealised losses on their bond portfolios thanks to central bankers raising interest rates. This only matters when they get into trouble and are forced to actually sell those bonds. Do you want to bet they won’t have to?
Heaven and Hell
Will Credit Suisse be next? Will it push investors and the Fed into a panic? Will the Fed publicly reverse course and begin cutting rates?
