Yahoo Finance - Fed's Powell: Rate decisions made 'meeting by meeting' after aggressive hikes

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Excerpt: Federal Reserve Chair Jay Powell said Friday future decisions on interest rate moves will be made on a "meeting by meeting" basis after an aggressive campaign that has pushed rates to the highest level in 16 years.

Powell also said interest rates may not need to rise as high as previously expected with the bank crisis tightening credit conditions, even with inflation well above the Fed's 2% target.

"We've come a long way in policy tightening and the stance of policy is restrictive," Powell said at a conference alongside former Fed Chair Ben Bernanke at the Federal Reserve in Washington Friday.

https://finance.yahoo.com/news/feds-powell-rate-decisions-made-meeting-by-meeting-after-aggressive-hikes-170449574.html

Hippo Nuggets...🦏

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1. Fed is trapped by its own looming financial crisis

Recall the housing asset bubble? Mortgage derivatives sold as sound investments to consumers seeking yield? Well now it's the banks that are seeking yield in T-Bills, so much so they don't have the cash to support bank runs. There is so much money no one knows what to do with it. Cash is a hot potato. As a result banks are as shaky as consumers seeking yield in 2008. The Fed is powerless. They have no tools remaining. They can't expand the money supply, they can't contract the money supply. They announced that the banking crisis may preclude the need for more interest rate hikes. Good luck with that. Let me translate for you: We're powerless so we'll sit and wait and hope for the best. Expect stagflation, higher inflation, bank meltdowns, and market weakness.

This post just my opinion.

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2. Head hurting lots lately accompanied by hot flashes I stopped having in 2000. nt