Wednesday, June 10, 2020

BREAKING: Fed Projects No Interest Hikes Through 2022

The madness continues.

 In its policy statement, the Federal Reserve has just announced that it is keeping its key interest rate, the Fed Funds rate, in the target range of 0.0% and 0.25%. But more importantly, it is now projecting that there will be no rate hikes through 2022.

This is going to require a lot more money pumping by the Fed and the Fed statement also signaled just that:
To support the flow of credit to households and businesses, over coming months the Federal Reserve will increase its holdings of Treasury securities and agency residential and commercial mortgage-backed securities at least at the current pace to sustain smooth market functioning, thereby fostering effective transmission of monetary policy to broader financial conditions. In addition, the Open Market Desk will continue to offer large-scale overnight and term repurchase agreement operations. 



  1. All my gold positions jumped 4-5% in the next few hours...

  2. More punishment dished out to savers. Great...