Correct! (Although use of the word “requirements” there is troubling and should probably be replaced with something like"overnight reserves" or some such.)
Interest rates, and money supply are the two ways of tracking “How much is the Fed artificially stimulating the economy.” The third one is the fed balance sheet. It is also increasing. It is higher than it was in the immediate post-pandemic when the Fed declared itwas too high and announced it would “roll off” assets on the alance sheet
So all three measures of smoke and mirrors show the Fed is intervening and artificially stimulating the economy.
- Why would it do that if the economy were good?
Because the underlying fundamentals are not good and indicative of a purchasing decline in the consumer sector. A lot of people still just scrapping by, using credit cards and early retirement plan distributions just to make ends meet weekly/monthly. And now the bill is coming due for holiday spending.
Exactly.
1.) the Fed doing all the things (okay many of the things) that it does when there is a crisis a recession etc. which to me indicates there is a crisis or threat etc…
2.) it does that while saying “there is no problem” and “the eocnomy is strong” and “we are not doing these things,” which is even more disturbing.
