Fed "Begins To Split" On Rate Hikes As "Chaotic Market Breakdown" Looms
Fed "Begins To Split" On Rate Hikes As "Chaotic Market Breakdown" Looms Back in early 2018, around the time the Fed was confident it could hike its way to around 4% without an accident, and with balance sheet QT on "autopilot", we first warned that every fed tightening cycle leads to a crisis. Deutsche: "Every Fed Tightening Cycle Creates A Crisis" https:||t.co|Lv2CM5gmEo — zerohedge (@zerohedge) May 24, 2018 A few months later, in late December, this was confirmed when the Fed panicked and ended its tightening cycle very prematurely. Shortly after it started restarted (NOT) QE, which was then followed by the liquidity supernova that was the covid global lockdowns, and everyone knows the rest. So fast forward to the start of 2022, when just as the Fed was setting off on its latest tightening campaign, we again reminded readers that " every Fed tightening cycle ends in disaster and then, much more Fed easing ." Remember, every Fed tightening cycle ends in disaster and then, much more Fed easing pic.twitter.com|zX7Dur8nLG — zerohedge (@zerohedge) January 5, 2022 While this warning was (again) ignored for far too long, with global central banks hiking rates no less than 294 times since Aug 2021 (vs 1302 rate cuts since Lehman), last week the Bank of England confirmed that this time won''t be different when it quickly ended its QT and restarted QE ("temporarily" of course) to avoid a brutal collapse of the US pension system (which for some bizarre reason, had been allowed to use margin to hedge duration exposure).
Fed "Begins To Split" On Rate Hikes As "Chaotic Market Breakdown" Looms
Fed "Begins To Split" On Rate Hikes As "Chaotic Market Breakdown" Looms Back in early 2018, around the time the Fed was confident it could hike its way to around 4% without an accident, and with balance sheet QT on "autopilot", we first warned that every fed tightening cycle leads to a crisis. Deutsche: "Every Fed Tightening Cycle Creates A Crisis" https:||t.co|Lv2CM5gmEo — zerohedge (@zerohedge) May 24, 2018 A few months later, in late December, this was confirmed when the Fed panicked and ended its tightening cycle very prematurely. Shortly after it started restarted (NOT) QE, which was then followed by the liquidity supernova that was the covid global lockdowns, and everyone knows the rest. So fast forward to the start of 2022, when just as the Fed was setting off on its latest tightening campaign, we again reminded readers that " every Fed tightening cycle ends in disaster and then, much more Fed easing ." Remember, every Fed tightening cycle ends in disaster and then, much more Fed easing pic.twitter.com|zX7Dur8nLG — zerohedge (@zerohedge) January 5, 2022 While this warning was (again) ignored for far too long, with global central banks hiking rates no less than 294 times since Aug 2021 (vs 1302 rate cuts since Lehman), last week the Bank of England confirmed that this time won''t be different when it quickly ended its QT and restarted QE ("temporarily" of course) to avoid a brutal collapse of the US pension system (which for some bizarre reason, had been allowed to use margin to hedge duration exposure).