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Fed Pivot Coming? See this tweet from Charlie Gasparino

Posted on 9/30/22 at 10:56 am
Posted by TigerTatorTots
The Safeshore
Member since Jul 2009
80803 posts
Posted on 9/30/22 at 10:56 am
Charlie is a pretty damn legit "inside sources" kind of guy. Not some rando


quote:

Charles Gasparino
@CGasparino
SCOOP (1/2):

@federalreserve officials getting increasingly worried about "financial stability" as opposed to inflation as higher rates begin to crush bonds, several big investors tell me. Fed growing worried about possible "Lehman Moment" w a 4% FF rate as Bonds and derivatives

(2/2) tied to them crash, given the enormous debt issued in just the past 3 years at super low rates. A Fed watcher told me the UK intervention was not "a one off" and the same systemic risk could happen here, which might cause the Fed to pause. More later on
@FoxBusiness


LINK
This post was edited on 9/30/22 at 10:57 am
Posted by Guntoter1
Baton Rouge
Member since Nov 2020
1030 posts
Posted on 9/30/22 at 11:24 am to
quote:

Fed Pivot Coming?


Mid terms getting close.
It may be time to start buying
Posted by Shepherd88
Member since Dec 2013
4592 posts
Posted on 9/30/22 at 11:30 am to
This has been my thought. It’s going to take decades of gradualism to normalize rates, they’re not going to be able to rip the bandaid off on this and fix the system so quickly.
Way too many Americans addicted to spending and debt. That’s what happens when you maintain a bad diet for 12 years of eating sugar (i.e. QE)
Posted by Bard
Definitely NOT an admin
Member since Oct 2008
51814 posts
Posted on 9/30/22 at 11:49 am to
It's coming down to "which way do you prefer to be fricked and when?"

Stay the course and bond rates rise enough to force Congress to choose very soon between pet programs or servicing debt?

...or...

Pivot and risk driving inflation up into double-digits (and possibly hyperinflation)?

Posted by Hussss
Living the Dream
Member since Oct 2016
6744 posts
Posted on 9/30/22 at 12:08 pm to
What the pundits won’t tell you:

Central banks will have to monetize all the debt they are about to issue under the cover of WWIII. When all else fails, they take ya to war. Endless wars, crises, pandemics, etc. are all excuses to issue debt. Without being able to issue debt, not only do central banks have no power but the system caves in on itself.
Posted by Strannix
District 11
Member since Dec 2012
49028 posts
Posted on 9/30/22 at 12:31 pm to
Pivot to what? Hyperinflation?
Posted by Upperdecker
St. George, LA
Member since Nov 2014
30622 posts
Posted on 9/30/22 at 12:42 pm to
The Bank of England flip from QT to QE was telling. I could see our Fed doing the same. They lack resolve and they’re getting imperfect information
Posted by LSUcam7
FL
Member since Sep 2016
7909 posts
Posted on 9/30/22 at 12:45 pm to
quote:

Fed growing worried about possible "Lehman Moment" w a 4% FF rate as Bonds and derivatives (2/2) tied to them crash


Can someone explain the purpose of said derivatives and who owns them?
Posted by Aubie Spr96
lolwut?
Member since Dec 2009
41201 posts
Posted on 9/30/22 at 1:05 pm to
This is like treating a fricking heroine addict.
Posted by MrLSU
Yellowstone, Val d'isere
Member since Jan 2004
26038 posts
Posted on 9/30/22 at 1:07 pm to
He is correct when the UK intervened they were on the cusp of a watching a major meltdown so they decided to AIG the Bond Market as opposed to letting it Lehman.
Posted by shoelessjoe
Member since Jul 2006
9926 posts
Posted on 9/30/22 at 1:47 pm to
A pivot meaning what, faster interest rate hikes or interest rate cuts?
Posted by Lsut81
Member since Jun 2005
80244 posts
Posted on 9/30/22 at 4:35 pm to
quote:

Fed Pivot Coming?


So they reacted too late and then when they did, their efforts did nothing to bring inflation down… so frick it, quit trying and let it all burn eh?
Posted by Lone Wolf McQuade
Member since Sep 2022
207 posts
Posted on 9/30/22 at 5:00 pm to
Because double digit inflation is not going to hurt the economy.

K
Posted by WaWaWeeWa
Member since Oct 2015
15714 posts
Posted on 9/30/22 at 5:32 pm to
We have painted (printed) ourselves into a corner. The fed will keep trying to do shite but it looks like there really is no way out.
This post was edited on 9/30/22 at 5:33 pm
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