The Fed is a laggard, now discussing when and how to taper QE. The ECB is an even bigger laggard, as inflation begins to rage.
The Fed is a laggard, not the leader, in ending the ridiculously easy money policies. At the ECB, internal resistance is building against its asset purchases but for now is getting squashed, leaving the ECB even further behind than the Fed.
The Swiss National Bank continues full tilt, but it doesn’t buy Swiss assets; it prints francs and dumps those printed francs for assets denominated in euros, dollars, and other currencies, including US stocks, which is a different ball game and works as long as enough foreign investors are silly enough to buy these Swiss francs.
But other central banks have already started the process of tapering asset purchases or hiking rates. Read More …
Opinion: In 2018 A confident Jerome Powell announced that the Federal reserve would begin to slowly raise interest rates to begin to wind down QE (money printing). Chairman Powell said to expect 2-3 interest rate increases in 2019.
The stock market cratered.
By Christmas Eve the Dow Jones index of 30 stocks was down 20%. A bear market was about to begin until Mr. Powell capitulated. The Market began a whole new rally with a promise there would be no interest rate increases until 2023.
The stock market spanked the Fed.
But things have changed. The Biden team is on one of the biggest spending sprees ever. Trillions are being spent and helicopter money is causing inflation for the first time in 40 years.
The Fed says the inflation is transitory. With talk of rising interest rates, we will see what the market has to say in short order.
“When He opened the third seal, I heard the third living creature say, “Come and see.” So I looked, and behold, a black horse, and he who sat on it had a pair of scales[a] in his hand.” Revelation 6:5
See our paper “The 1% and Revelation: Do Not Harm the oil and wine” HERE