Powell Explains the Fed’s New Regime: Rate Hikes & QT to Fight Inflation while Offering Liquidity to Banks to Keep them from Toppling
It makes sense in this era of high inflation, QT, rising policy interest rates, and high financial fragility in the banking system, after years of money printing and interest rate repression. The new regime was already tested successfully by the Bank of England last fall: Tightening through rate hikes and QT while simultaneously providing liquidity to the financial sector for a brief period to douse a crisis. Today, the Fed confirmed the new regime: It hiked by 25 basis points, bringing the top of the range to 5.0%, and QT continues as before, while it is also providing liquidity support to the banks. Some people ... (full story)
- Comment #1
- Mar 23, 2023 9:05am Mar 23, 2023 9:05am
- | Joined May 2019 | Status: Member | 8 Comments
- Comment #2
- Mar 23, 2023 1:35pm Mar 23, 2023 1:35pm
- | Joined Mar 2023 | Status: Junior Member | 4 Comments
- Older Stories
The oil market saw a further recovery yesterday. ICE Brent settled more than 1.8% higher on the day, whilst WTI managed to settle above US$70/bbl for the first time in a week. The ...
In normal trading hours Wednesday, precious metals bounced from prior-day losses with gains ranging from 0.4% for gold to 4.5% for palladium. They advanced further in after-hours ...
The UK is giving increasing importance to its critical materials strategy, but risks falling behind in the race to bolster supply chains, attendees at the Critical Metals and ...
- Newer Stories
The Silver price shot higher on Wednesday following the Federal Reserve´s dovish interest rate decision when the central bank announced its 25 bp rate hike. The decision was ...
U.S. equities reacted positively to the dovish rate hike at first but quickly pared gains as Treasury Secretary Yellen told the Senate in her testimony that she is not considering ...
Xi’s meetings with Putin and the joint statements released on Tuesday should dispel any remaining doubts that Xi has doubled down on relations with Russia over the past year even ...