The Fed just opened up its pocketbook – Here’s what matters now

April 9, 2020

Chris Temple kicks off today with a focus on the surprise move today by the Fed. We were all waiting to see the US jobless claims numbers and what comes out of the OPEC+ meeting but the Fed has stole the headlines. The massive spending program will have implications for markets in a wide sense.

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    Apr 09, 2020 09:46 AM

    Chris, the skies are not appearing any too bright, money is flying around like locusts to a meal. DT

    Apr 09, 2020 09:52 AM

    Powell is probably slowly walking up and down mechanically tearing a piece of paper into tinier and tinier shreds muttering to himself will all this money printing work. Of course it won’t work it never has worked, you can’t keep trying to solve a problem by throwing money that has no value at it. DT

    Apr 09, 2020 09:03 AM

    If anyone had doubts before about whether we were staring at a business depression, just look at the massive amounts of liquidation that is being force Fed (no pun intended) into the system. DT

    Apr 09, 2020 09:05 AM

    True–but given the mechanics and mathematics both of a fractional reserve system, he doesn’t know what else to do. That even junk debt now will be papered over shows just how far gone things are. One of the interesting questions going forward is whether there will be critical mass to fundamentally change our debt-money system.

      Apr 09, 2020 09:38 AM

      Chris, Once the little people, the grocer, the chauffeur, and the dressmaker, realize their dreams of a sound retirement have been broken and they find out the affluence they thought they had is debt, then and only then will real change be initiated. DT

    Apr 09, 2020 09:15 AM

    I don’t think you can really assume that stagflation is a given going forward as theoretically the Fed can add 2.3 trillion or more bi-monthly for as long as they think it will take to raise inflation expectations while also rotting the currency and debt. They re actually trying MMT/Modern-Monetary-Theory which is supported by Cortez and Bernard Sanders. This is the same theory that has been poo-pooed by Krugman and other Nobel prize winning economists. Me thinks these Fed folks are far more desperate than we think and see this good opportunity to test MMT theory. Facinating and possibly dangerous experiment. Remember it was 40 plus years of neoliberal Friendmanism that the West took up until it failed in 2008 and is looking to have finally died an ugly death. At the end of the day, it is ALL theory until it doesn’t work anymore. If the entire globe moves to use this neo-chartalism, at it gets us through this crisis, then something new will be added to the central-bankers+politicians “play-book”. I do not have a crystal ball and wood be foolish to assume it will work, but I am fascinated by how fast the world can change.

      Apr 09, 2020 09:38 AM

      Krugman is a terrible economist even for a Keynesian and when any Keynesian is given a Nobel prize, it is as meaningful as O-bomb-a receiving the Nobel peace prize.

      Like the Keynesian school of thought, MMT is promoted to provide cover for the wealth-transferring scam that IS central banking. MMT will “work” as intended but that is not a good thing. AOC is a vacuous tool, Sanders is a willing one.

        Apr 09, 2020 09:48 PM

        I am waiting for Fauci and Bill Gates to get the Nobel prize for medicine. If you want to see what an evil little turd Fauci is just read PLAGUE, by Dr. Judy Mikovitz.

        Apr 09, 2020 09:58 PM

        +1 The sheeple must wake up to this.

        Apr 09, 2020 09:03 PM

        “when any Keynesian is given a Nobel prize, it is as meaningful as O-bomb-a receiving the Nobel peace prize.” — Good one Matthew!

    Apr 09, 2020 09:22 PM

    There are no experts in the market anymore………..anything goes……anything is possible ….everything is fake, everything is upside down…..Reality….forget it….JMO

    Apr 09, 2020 09:45 PM

    The Fed is not the hero here. They CAUSED a fire that now they have to put out.

    Apr 09, 2020 09:24 PM

    Interesting moves by the fed, and interesting comments about the move.

    Since the treasury has absorbed the fed and is the oversight of the banks now, wouldn’t it be the treasury making this move? Since the fed is now nationalized, maybe this move helps some companies holding large debt loads. And maybe it forces the fed to hold the debt only to default at a later date.
    This could be a brilliant move to spur the economy and kill the fed.

    Apr 09, 2020 09:05 PM

    Crash update: Rally in progress

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