The CPI is Two Months Away From Bottoming Before the Next Leg Up
The Fed is only now seeing the CPI and interest rates converge.
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The Fed is only now seeing the CPI and interest rates converge.
Pressure is building, and something else will break.
Money Supply typically flattens at this time of year and then dips lower mid-Summer before picking back up. If Money Supply continues to show negative growth, it is only a matter of time before something else breaks in the economy.
The Fed will not send the Treasury a bill to cover its losses. Instead, it will book the losses into a deficit account that will be held until the Fed makes enough money to make up for its losses.
How long until the Fed follows in the BoE footsteps and re-enters the market, using “crisis mode” as the excuse?