Fed lowers rates 1/4 of a point.
QE Light starting up NOW for maintenance issues as opposed to early next year.
$40 Billion per month of T-Bills thru April.
Why so big and wanting to add to reserves?
April 15th.
3 dissenting votes.
First time since September 2019
Fed officials penciling in only one rate cut for 2026.
The bar for lower rates is getting higher.
Higher GDP growth for 2026.
Core PCE median 2.5 for 2026.
1.75% in cuts have finally gotten Fed Funds back down to the yield on the 2-year.
The Fed always follows the 2-year.
But long rates have risen roughly 75 basis points.
The Treasury Debt Issuance is massive.
So these lower rates havent helped housing.The yield curve continues to steepen.But the stock market loves the announcement of yet another QE, even if its from T-Bills.T-Bills make up two-thirds of debt issuance.Interestingly enough, Powell mentioned that he felt that the jobs numbers were overstated by 60,000.
So +40,000 is really - 20,000.
Time to buy non-dollar denominated assets especially after Powell is gone.
Trump couldn't care any less about INFLATION.
To the MOON Alice!
"Cults don't end well. They really don't."
