MH+ Ep.32 Navigating The FED’s Impact on Global Markets (guest: Aidan Garrib)

On this weeks Huddle +, Patrick welcomes back to the show, Head of Global Macro Strategy at PGM Global, Aidan Garrib. Pat and Aidan discuss the FED's impact on global markets, inflation and much more.
Check out PGM Global: www.pgmglobal.com
*Got questions for Kevin and Patrick? Submit your questions to: [e-mail]
Visit our merch store!!! www.themarketh...
To receive our emails with the charts and links each week, please register at: markethuddle.com/

[@timrelke7885]

Amazing episode - because is both educational and insightful (everyone needs to watch). Aidan Garrib's charts make the educational parts quick and the insights easy to understand and retain.

[@aidangarrib7871]

thanks Tim

[@kurkinet55]

A great session!

[@aidangarrib7871]

glad you enjoyed it

[@chen_490]

So many Jewels dropped.

[@MissMyRyan]

I believe it is unlikely that the Fed will re-engage in QE to fund future fiscal deficits. That would be politically unpalatable. But the Fed is already taking actions to have banks (primary dealers and shadow banks) act as the Fed’s proxy to finance deficits. Specifically, the Fed is reducing any stigma from banks using the discount window and standing repo facility to repo bank collateral (like Treasuries). The Fed will also relax the SLR re Treasury holdings (which will have zero or low Basel risk weighting).
Hence banks, rather than creating deposits to make loans to the public, will create deposits to buy Treasures (lending to the government rather than the public). The de-stigmatized discount window, SRF and FHB will provide an ultimate repo source for those holdings, if usual repo becomes tight. It’s still inflationary, it’s just more sneaky :)