Tuesday , November 5 2024
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Fed ends the “QT” without notice

Summary:
Remember: these moron unqualified libertarian people are capable of anything.Like yesterday's abrupt change in reserve asset policy ending the planned b per month reduction in system reserve assets 2 months earlier than previously indicated.Bank system now has to adjust (bearish) to arrange for inclusion of the additional b of these non-risk assets they will now have to possess.Bank system currently only adding about b per month of total bank credit so this now additional b of non-risk assets the Fed is going to add to the system to probably (to these unqualified morons) to "lend out!" is going to displace about 1 month's total credit production for the system...Accordingly the result of this surprise increase in non-risk reserve asset policy was immediately bearish for risk

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Remember: these moron unqualified libertarian people are capable of anything.

Like yesterday's abrupt change in reserve asset policy ending the planned $35b per month reduction in system reserve assets 2 months earlier than previously indicated.

Bank system now has to adjust (bearish) to arrange for inclusion of the additional $70b of these non-risk assets they will now have to possess.

Bank system currently only adding about $70b per month of total bank credit so this now additional $70b of non-risk assets the Fed is going to add to the system to probably (to these unqualified morons) to "lend out!" is going to displace about 1 month's total credit production for the system...

Accordingly the result of this surprise increase in non-risk reserve asset policy was immediately bearish for risk asset prices... we'll see how much over the next week...

Not good surprise policy change from Powell Fed; really screwed the banks (again)... we may start to see some criticism of Powell from more than just Trump.

Mike Norman
Mike Norman is an economist and veteran trader whose career has spanned over 30 years on Wall Street. He is a former member and trader on the CME, NYMEX, COMEX and NYFE and he managed money for one of the largest hedge funds and ran a prop trading desk for Credit Suisse.

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