SOUND ON 🔊 Tom Luongo @TFL1728 talks about how far the Fed will hike, & how gold & silver respond going forward... #FederalReserve pic.twitter.com/k5SzQzOvxP
— Chris Marcus (@ArcadiaEconomic) September 21, 2022
When the Fed Chairman comes out less than 60 days before the midterm election and say, "Congress needs to get its fiscal house in order." The Fed's not suppose to ever discuss fiscal policy. And yet the Fed Chairman came out when he was speaking at CATO--interesting that he did this at a nominally libertarian think tank to say that Congress needs to get their fiscal house in order . . . right before the midterm election, right before the most pivotal election possibly in the country's history. Big deal . . . .
What the Fed is doing now is drying up liquidity. The Fed is, in fact, not buying any more mortgage-backed securities, and that they're selling more. Danielle DiMartino Booth reminded everybody that it takes up to 3 months for some of these treasury sales and mortgage-backed security sales to clear, settle. They can sell them in June, but they take 3 months to clear. So they're not going to start showing up on the Fed's balance sheet until they've cleared. So they could have been selling treasuries or rolling them off the balance sheet or whatever three months ago, meanwhile we have Peter Schiff going, "The Fed's not shrinking its balance sheet." Come on! If I know this, then you know this.
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