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)