The Federal Open Market Committee today juiced financial markets by declaring interest rates will not rise any time soon, and in fact, implied the FOMC is fine with negative rates. With Biden adding upwards of $6 trillion in sovereign debt, the Fed really doesn’t have a choice.
This is all madness of course. Modern Monetary Theory (MMT) is the same as Marxism…extreme irresponsibility.
As Bush 41 famously said, This will not stand!
“If the Fed wanted overnight rates higher, they would have raised the IOER and/or RRP. Instead, they raised the RRP counterparty limit meaning they are very comfortable with rates here at zero, but don’t want them to drop into the negatives”… although they now seem to be ok with rates dipping occasionally into the red as they have done recently in GC repo…reported Zero Hedge.
Building permits and housing starts missed bigly this morning. Could higher interest rates be to blame? Will the bond market take back control of interest rates from the Fed?
Stay tune — Same Bat Time, Same Bat Channel, for more Biden #ObamaKamala follies.
MBA Mortgage Applications (Mar 12) printed at -2.2%.
Building Permits (MoM) (Feb) printed at 1.682M vs 1.75M consensus estimate.
Housing Starts (MoM) (Feb) printed at 1.421M vs 1.565M estimate.
Building Permits Change (Feb) printed at -10.8%.
Housing Starts Change (Feb) printed at -10.3%.
EIA Crude Oil Stocks Change (Mar 12) printed at 2.396M vs 2.964M estimate.
Keep The Truth Bombs Coming From CDMedia! Donate!
- “What Can I Do?” Say Conservatives, While Still Using Facebook, Twitter, Youtube, Google, Instagram, Feeding Dollars To Big Tech
- The Horrific Casual Sentiment That ‘Communism Had Positives And Negatives’