Anyone else STRONGLY disagree with what the Fed is doing?

[countryBoy641]

I don't think our current inflation has anything to do with stimulus handouts.
I think its from a paucity of bidders (at 4.00%) at the Treasury auctions.
Inflation is 8.00%. Who wants bonds at 4.00%?
So the FED is rolling a lot of the notes and bills themselves.
And increasing the money supply to do this.
I think that is the inflation.

 

[TrAndy2022]

Last year from Summer on, when they said inflation is only transitory and gone or much lower in 2022. LOL

 

[murray t turtle]

I ...... think our current inflation has anything to do with stimulus handouts.
And increasing the money supply to do this.
I think that is the inflation.

%%
ALL of/ the above/
but you have so simply ask/ seek + knock to find some transitory hi prices LOL
I asked the metals dealer if she had sold \
much gold.....\ this year. No she said but did note plenty of US dollars trade+ steel scrap.........................

 

[nrstrader]

Even with these rate increases, if you spread CPI vs Fed Funds we have never had this big of a spread.
We are just reverting to something more in line with historic norms.

The Fed should really be applauded for not giving into the political and market bullshit if anything. We don't need the lower half of the populace paying a giant tax so the well off people can watch their account balances go up while sitting at their bullshit remote office job pretending to do something productive.

We are going to get exactly what we need and that is a massive dose of creative destruction.

 

[NCC1701]

I don't think our current inflation has anything to do with stimulus handouts.
I think its from a paucity of bidders (at 4.00%) at the Treasury auctions.
Inflation is 8.00%. Who wants bonds at 4.00%?
So the FED is rolling a lot of the notes and bills themselves.
And increasing the money supply to do this.
I think that is the inflation.

Yes, so do you know why people are not stampeding into I-bonds? I don't get it

 

[SoyUnGanador]

I don't think our current inflation has anything to do with stimulus handouts.
I think its from a paucity of bidders (at 4.00%) at the Treasury auctions.
Inflation is 8.00%. Who wants bonds at 4.00%?
So the FED is rolling a lot of the notes and bills themselves.
And increasing the money supply to do this.
I think that is the inflation.

That is literally what I said LOL.

 

[countryBoy641]

Someone send an email to Powel and link this thread so he can smarten up and get with the program, please...

OK, but this is not innocent screwup. The FED and the Treasury know the score.
They cannot auction off bonds at 5.00% or 6.00%.
Government is already maxed out on interest expense.

 

[SunTrader]

The Treasury is always issuing bonds/notes for the public to buy. Nothing new there.

But The FED currently is letting the bonds/notes they "purchased" expire, meaning removing excess liquidity or make that exxxxxcessive liquidity - while simultaneously raising rates.

They kicked the can down the road long enough.

Here's where I differ from those who think a Santa Clause might be coming, and even a return of the bull market soon. Say they raise 75 bps in Nov and 50 bps in Dec. Market will likely read that as the worst (rate hikes) is behind us, off to the races. Exactly the opposite what The FED wants and needs to slow things down ... more than just a tick or two.

Home construction has sure gotten the hint, other industries and consumers need to as well.

 

[countryBoy641]

The Treasury is always issuing bonds/notes for the public to buy. Nothing new there.

But The FED currently is letting the bonds/notes they "purchased" expire, meaning removing excess liquidity or make that exxxxxcessive liquidity - while simultaneously raising rates.

They kicked the can down the road long enough.

Here's where I differ from those who think a Santa Clause might be coming, and even a return of the bull market soon. Say they raise 75 bps in Nov and 50 bps in Dec. Market will likely read that as the worst (rate hikes) is behind us, off to the races. Exactly the opposite what The FED wants and needs to slow things down ... more than just a tick or two.

Home construction has sure gotten the hint, other industries and consumers need to as well.

I don't think that's the problem.
I think that the Credit Swisse liquidity problem is the real problem.
Pensions funds trading on margin??
WTF.
With the ZIRP (0.00%) policy, pension managers have had to scramble to get yields/returns.
Credit Swisse took a big shortcut (being on margin).
Who else is doing crazy stuff?

 

[SoyUnGanador]

The Treasury is always issuing bonds/notes for the public to buy. Nothing new there.

But The FED currently is letting the bonds/notes they "purchased" expire, meaning removing excess liquidity or make that exxxxxcessive liquidity - while simultaneously raising rates.

They kicked the can down the road long enough.

Here's where I differ from those who think a Santa Clause might be coming, and even a return of the bull market soon. Say they raise 75 bps in Nov and 50 bps in Dec. Market will likely read that as the worst (rate hikes) is behind us, off to the races. Exactly the opposite what The FED wants and needs to slow things down ... more than just a tick or two.

Home construction has sure gotten the hint, other industries and consumers need to as well.

The Treasury issuing bonds is not in and of itself inflationary - its taking the money out of the public and putting it in the hands of the government.

But the Fed BUYING those bonds by printing money is what is behind all this inflation. As you said, they just need to quit purchasing, and let them expire. Inflation by definition will have to peter out in time. Raising interest rates to bring on a recession or possibly even a depression is what I am saying is INSANE. Waaaay more harm than good given that if they just quit printing money and buying bonds inflation has to drop over time.