May 19, 2024 The topic for this issue focuses on when and how the bond market lost its predictive power regarding the economy and inflation. This is relevant because the bond market is enormous, and serves as a core asset class for central banks and for investment portfolios. Recently published content: Most Investments are Actually […]
Yep, plus they are talking about INCREASING short term debt issuance versus going back to QE. They have to because of the deficits. But this can create feedback and we’ll have the situation of both government spending and bondholder cash contributing to the inflationary dynamic. So for some time to come, the trend will be inflationary, even as the Fed balance sheet winds down. Though, if you look at their balance sheet, it can only go down so far, since Treasury’s bank account is at the Fed and I don’t see that decreasing soon either.