Fed’s Powell Admits a Bigger Bailout for Wall Street Is Coming; Fed’s Balance Sheet Ballooned by $176 Billion Since September
By Pam Martens and Russ Martens: October 9, 2019 ~
Federal Reserve Chairman Jerome Powell Speaking at the National Association of Business Economists on October 8, 2019
Yesterday, at a speaking event in Denver at the National Association of Business Economists, Federal Reserve Chairman Jerome Powell acknowledged that a larger, long-term bailout of Wall Street is coming. His two key points were buried in a subterfuge of puffery but came across loud and clear: “…my colleagues and I will soon announce measures to add to the supply of reserves over time.” And this: “As we indicated in our March statement on balance sheet normalization, at some point, we will begin increasing our securities holdings to maintain an appropriate level of reserves. That time is now upon us.”
Let that final statement sink in for a moment. Under the previous Federal Reserve Chair, Janet Yellen, balance sheet normalization at the Federal Reserve meant reducing the Fed’s unprecedented $4.5 trillion balance sheet to get back to something near pre-crisis levels. Under Powell, normalization now means increasing the Fed’s balance sheet to as yet undefined heights.
The Fed’s balance sheet had been bloated to the unprecedented level of $4.5 trillion by buying up bonds from Wall Street’s teetering banks during the financial crisis. The Fed likes to give its Wall Street bailouts fancy names to disguise their real purpose. This one was called Quantitative Easing or QE. From November 2008 until October 2014, the Fed deployed three rounds of QE – QE1, QE2 and QE3. The final one was known on Wall Street as QE-Infinity since it appeared to be open-ended.
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______________________________________________________
All articles, videos, and images posted on Dinar Chronicles were submitted by readers and/or handpicked by the site itself for informational and/or entertainment purposes.
Dinar Chronicles is not a registered investment adviser, broker dealer, banker or currency dealer and as such, no information on the website should be construed as investment advice. We do not support, represent or guarantee the completeness, truthfulness, accuracy, or reliability of any content or communications posted on this site. Information posted on this site may or may not be fictitious. We do not intend to and are not providing financial, legal, tax, political or any other advice to readers of this website.
Copyright © 2019 Dinar Chronicles
By Pam Martens and Russ Martens: October 9, 2019 ~
Federal Reserve Chairman Jerome Powell Speaking at the National Association of Business Economists on October 8, 2019
Yesterday, at a speaking event in Denver at the National Association of Business Economists, Federal Reserve Chairman Jerome Powell acknowledged that a larger, long-term bailout of Wall Street is coming. His two key points were buried in a subterfuge of puffery but came across loud and clear: “…my colleagues and I will soon announce measures to add to the supply of reserves over time.” And this: “As we indicated in our March statement on balance sheet normalization, at some point, we will begin increasing our securities holdings to maintain an appropriate level of reserves. That time is now upon us.”
Let that final statement sink in for a moment. Under the previous Federal Reserve Chair, Janet Yellen, balance sheet normalization at the Federal Reserve meant reducing the Fed’s unprecedented $4.5 trillion balance sheet to get back to something near pre-crisis levels. Under Powell, normalization now means increasing the Fed’s balance sheet to as yet undefined heights.
The Fed’s balance sheet had been bloated to the unprecedented level of $4.5 trillion by buying up bonds from Wall Street’s teetering banks during the financial crisis. The Fed likes to give its Wall Street bailouts fancy names to disguise their real purpose. This one was called Quantitative Easing or QE. From November 2008 until October 2014, the Fed deployed three rounds of QE – QE1, QE2 and QE3. The final one was known on Wall Street as QE-Infinity since it appeared to be open-ended.
→ Continue Reading
______________________________________________________
If you wish to contact the author of any reader submitted guest post, you can give us an email at UniversalOm432Hz@gmail.com and we'll forward your request to the author.
______________________________________________________
All articles, videos, and images posted on Dinar Chronicles were submitted by readers and/or handpicked by the site itself for informational and/or entertainment purposes.
Dinar Chronicles is not a registered investment adviser, broker dealer, banker or currency dealer and as such, no information on the website should be construed as investment advice. We do not support, represent or guarantee the completeness, truthfulness, accuracy, or reliability of any content or communications posted on this site. Information posted on this site may or may not be fictitious. We do not intend to and are not providing financial, legal, tax, political or any other advice to readers of this website.
Copyright © 2019 Dinar Chronicles
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