YahooFinance/Yaseen Shah/7-24-2022
“‘I think you’re seeing the Fed trying to walk the tightrope,” Hayes said on Yahoo Finance Live (video above). ‘They wanted to bring down demand, which they’ve certainly done, but they don’t want to destroy the economy.’”
USAGOLD note: Hayes points out that the Fed intended to withdraw $475 billion from the bond market in June but ended up buying about $3 billion in U.S. Treasuries instead, and reduced MBS holdings by only $75 billion. He says the central bank is “jawboning” to bring down inflation, but it “doesn’t want to push too hard.” As we have said in the past, it is important to make a distinction between what the Fed says and what it does. Something to think about as we kick-off Fed Week and the typical hoo-hah that accompanies it.
