The Fed could surprise markets by sounding even more aggressive as economy teeters

Federal Reserve chair Jerome Powell

The Federal Reserve is widely expected to raise interest rates by another three-quarters of a point Wednesday, and it could surprise markets by sounding even more unrelenting about tightening policy. That means the Fed would sound “hawkish,” or in a mode where it is bent on raising interest rates as much as it needs to … Read more

Here are the three things the Fed has done wrong, and what it still isn’t getting right

The Fed stops the market collapse

Key Points: The Federal Reserve suddenly finds itself second-guessed as it tries to navigate the economy through inflation and away from recession. Complaints center on three themes: That the Fed didn’t act quickly enough to tame inflation, that it isn’t acting aggressively enough now, and that it should have been better at seeing the current … Read more

Yellen Just Soaked Up Record Levels of Liquidity

Janet Yellen

The Treasury General Account absorbed a heap of cash last week as taxes poured in, bringing the TGA balance to $908 billion, the highest since May 2021: Given these taxes were previously somebody’s deposits, this resulted in the largest weekly decline in bank reserves on record: a whopping $466 billion! (See above) That’s a lot … Read more