The Fed's Rate Hikes Aren't Working, Says Joseph Wang

Higher interest rates are not effectively combating inflation, according to Joseph Wang, Chief Investment Officer at Monetary Macro. The interest rate-sensitive sectors of the economy continue to grow, with Wang noting that construction jobs are growing and homes continue to be built. Wang believes interest rates will continue to rise in an effort to combat this ongoing problem.
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[@garyportugal8035]

very good discussion

[@mileshumphreys5944]

70% more on groceries 3.00 more a gallon of gas! Hmm wonder what happened? 😮

[@jhps1000]

No more petrodollar recycling…

[@cryptosheets3162]

Skylar & Joseph [Thumbs up]

[@mrkante92]

Let go🎉

[@leestack]

Thank you, Joseph. Why rates aren't working - because the money printing bypassed the banking system. Essentially - the fiscal authorities sent checks directly to M1/M2. This is a lot like a full bathtub. When you get in - water flows over the sides and the more water that is displaced - the more water flows over the sides. Once the excess is gone - water continues to slosh for some time. With each slosh water flows over the side until equilibrium is achieved.

[@issenvan1050]

What is a hawkish pause? Like a round square! FED’s BS hasn’t been going dowb for 2 weeks in a row now! Why nobody talks about it?

[@seanobrien7751]

war is inflationary and high rates are a feature. there is also currency manipulation going on- it was apparent the goal is to weaken the dollar for a bit probably to alleviate the pressure on our allies.

[@vitalsigns6403]

😂if this is true, why didn’t this “hawkish FED”🙄 raise rates last week? The market has figured out the FED is done raising rates and truly not going to combat inflation. Lets see: no homes for sale and prices still very sticky/bubbly, stocks pumping, unemployment at record lows.😂way to go Powell! We need much higher rates, larger QT, and mbs sales now!!!!🤡

[@79bull]

I believe a 79% chance of raise in July is priced in.

[@issenvan1050]

What is the reserve requirement?!

[@79bull]

How much HQLA must be held as a % of the balance sheet. This is (or was) 10%, so at least this amount must be cash or another high quality liquid asset equivalent.

[@issenvan1050]

@@79bull Now it’s zero, right? What is HOLA?

[@79bull]

@@issenvan1050 HQLA = high quality liquid asset. I’m UK and it’s 10% here, or was @ least.

[@issenvan1050]

@@79bull In US it’s zero! Then, how is this fighting inflation! BS!

[@79bull]

@@issenvan1050 yesterday Powells 3 hour long testimony the US bankers were opposing a raise in the reserve ratio. I did not realise it was zero. If this is the case I would say it’s too late and that played a part in past inflation, so tightening is the next step. Which in turn would reduce future lending, I guess.

[@issenvan1050]

Of course, it’s the money supply! Inflation is dead…for now.

[@tanpeng2884]

never trust opinion of any wall street experts

[@issenvan1050]

Another FED apologist.