Confirmation & Explanation
I have never seen this before. I watched this video by George Gammon yesterday afternoon and just happened to see it shortly after it was posted on YouTube. I forgot to copy the link and by the time I finished writing my post about it and eventually went back to get the link of the video, I was no longer able to find the video on YouTube. I tried again last night and again this morning. George must have hit the nail on the head because this video was immediately pulled and has now disappeared? So for months I have been criticizing the FED’s continued hawkishness, and said there was an agenda that didn’t match up with the BS narrative about inflation. George Gammon’s latest video explains. He agrees that Powell has been disingenuous and tells why. The last QT round that started in 2018 ended rather abruptly with the Sept. 2019 Repo Crisis, Powell needed to avoid a repeat of that episode. To avoid the markets from driving the short rates down he has jawboned the short term credit markets into believing the FED is going to keep hiking Fed Funds. This meeting next week is likely the last hike(that was more than he previously thought he could get away with) So George explains he is likely to keep talking tough and the rest of the Fed heads have been doing so as well. The crunch comes over the next days and weeks when the economic data continues to show a slowdown, with lower rates of inflation and job growth. At some point he will have to throw in the towel. Maybe at first, he will be able to get away with just pausing and holding rates unchanged. At some point he is either going to have to cut Fed Funds and or stop QT. If he doesn’t, the repo market will again spike like 2019.