oski003 said:DiabloWags said:oski003 said:DiabloWags said:oski003 said:DiabloWags said:oski003 said:movielover said:
Amusa@amuse: The Fed's Empty Safety Net: Powell's Reckless Gamble With US Liquidity
"The Federal Reserve's Reverse Repurchase Agreement (RRP) facility is not a household phrase, yet for years it has quietly functioned as a critical stabilizer for America's financial system. At its peak in 2022, this overnight cash lot held more than $2.5 trillion, money parked by large institutions in exchange for ultra-safe Treasury collateral, ready to be drawn down during periods of market stress. Today, that cushion has all but vanished. The RRP balance stands at just $57.49 billion, the lowest since 2021. This is not a natural development. It is the result of a conscious policy choice by Fed Chair Jerome Powell, whose refusal to cut interest rates has rendered the facility's yield uncompetitive, driving liquidity out of the Fed's reach and into riskier corners of the market....
"...For two years, this tool served as a shock absorber. As the Fed shrank its balance sheet through quantitative tightening, trillions flowed out of RRP rather than out of bank reserves. The ride was smooth because the buffer was deep. Now, with that buffer nearly empty, every additional dollar drained from the system will come directly from bank reserves. In mechanical terms, Powell has taken the suspension system off the car while still barreling down a pothole-ridden road."
"...The cost of his stubbornness is not confined to abstract market plumbing. It is hammering American families. Mortgage rates above 7% have priced millions out of the housing market. Car loans at historically high rates have put reliable transportation out of reach for many working families. Business credit has grown costlier, slowing investment and job creation. By keeping rates artificially high, Powell is not just draining the RRP; he is draining opportunity from the real economy...."
"...It is difficult to ignore the political undertone. Not a single economist employed by the Federal Reserve has made a political contribution to a Republican candidate in over 25 years, and almost everyone at the Fed is a staunch Democrat firmly opposed to Trump's agenda. By holding rates high deep into the first year of President Trump's second term, Powell's Fed is creating economic headwinds that act as a de facto rebuke of the administration's pro-growth agenda. Whether deliberate or not, the effect is the same: a central bank using monetary conditions to undermine the elected government's policies."— @amuse (@amuse) August 15, 2025
Powell was going to lower rates a few weeks ago but he PACO'd.
Sure he was.
Our mascot is DELUSIONAL.
Owned again.
Too easy.
If you didn't have dementia, you'd remember that you already "roasted" me when I posted that.
No dementia.
I just had to share with everyone here one more time HOW BIG OF A PATHETIC LIAR YOU ARE when you claimed that Powell was going to lower rates.
Why do you LIE so much?
Do you LIE to your wife too?
I don't lie to my wife. She isn't a demented moron. Thnx.
So why do you LIE here?
I don't. Why do you LIE here?
In all HONESTY, I find it very FUNNY that you would get so HYSTERICAL over a JOKE about Powell.
You're LYING AGAIN.
https://bearinsider.com/forums/6/topics/125946/replies/2527509
