Not One, Not Done. It’s The Balance Sheet, Stupid! (Part 1)

Well, the Donald didn’t get his low interest man and the crybabies of Wall Street didn’t get their Fed capitulation. So hissy-fit on!

Still, for all the tortured post-meeting gumming by the talking heads of bubblevision about dot-plot revisions and how a dovish Fed statement didn’t coo dovish enough, they still don’t get it.

It’s not about a piddling 50 basis points on the Federal funds rate next year—-that is, whether the target rate will be raised two times as Powell explained during his presser—when the street was braying for one in December and done.

To the contrary, the clear and present danger to the greatest financial bubble in modern history is the fact that Powell affirmed without hesitation that the Fed will proceed—on automatic pilot no less—to drain that other Swamp via QT or balance sheet run-off.

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