The FOMC was supposed to be a snoozefest.
But the FOMC hiked IOER to 1.6%, which is more yield than most of the o/s Treasury stock, which the primary dealers have to buy if you want to sell... Err, what?!?
Isnt this what happened in Sept/ Oct? - which forced 3 rate cuts and not-QE4 to avoid a crash?
On the other hand, assuming they know what they are doing, maybe these Dems at the Fed have it all worked out. Keep the plates spinning for just a bit longer, then blame Trump in Q2.
Post a Comment