Jerome Powell thereafter the Secretary of the Treasury Janet L. Yellen Sees Fed Delivering Soft Landing in Battle Against Monetary Policies!
Few words about the Ukrainian War; The
lamestream media as/within NATO members countries showing only Russian potential
as Russia reflects these imaginations and not the genuine reality on the ground.
(click on the images to the
left)
The U.S. yield curve has been
flattening: … Why you should care?
Well, Chair Powell’s at the Press Conference March 16, 2022 said “there's also the shrinkage of the balance
sheet which you people do the math different ways, but that might be the
equivalent of another rate increase just from the runoff of the balance
sheet.”
Jerome Powell repeat thereafter the
Treasury Secretary Janet Yellen that he is expected the central bank will be
able to bring inflation down without overshooting on the tightening monetary
policy, which has historically played a role in bringing about a recession. "Yes, that will lead to some tightening in
financial conditions in the form of higher interest rates and just the sorts of
things -- we're not targeting any one or more of those things, but financial
conditions generally should move to a more normal level so that we -- because we
know the economy no longer needs or wants these very highly accommodative stance
which -- you know, so it's time to move to a more normal setting of financial
conditions, and we do that by moving monetary policy itself to more normal
levels." … „And remember that the
financial conditions we had, for the last couple of years were a function not
only of very aggressive and appropriately so fiscal policy, but also highly
accommodative monetary policy, the monetary policy settings that we put in
place”
Basically what Jerome Powell does say goes as follow. … US Total
Assets Held by All Federal Reserve Banks is the total value of assets held by
all the and at the Federal Reserve banks. This can include treasuries,
mortgage-backed securities, federal agency debt and, and so forth. During the
Great Recession, having already lowered the target interest rate to 0%, the
Federal Reserve further attempted to stimulate the US economy by buying and
holding trillions of dollars’ worth of US treasuries and mortgage-backed
securities, a process known as Quantitative Easing or QE. US Total Assets Held
by All Federal Reserve Banks is at a current level of $8.954 in trillion, up
from $8.911 in trillion last week and up from $7.580 in trillion one year
System Open Market Account Holdings
of Domestic Securities. The Federal Reserve System Open Market Account (SOMA)
contains dollar-denominated assets acquired through open market operations.
These securities serve several purposes. They are: collateral for U.S. currency
in circulation and other liabilities on the Federal Reserve System’s balance
sheet; a tool for the Federal Reserve’s management of reserve balances; and a
tool for achieving the Federal Reserve’s macroeconomic objectives. The New York
Fed has been selected by the Federal Open Market Committee (FOMC) as the Reserve
Bank that executes transactions for the SOMA. SOMA holdings are allocated to
each of the Reserve Banks on a percentage basis. The SOMA also contains the
Federal Reserve's foreign currency reserves, which are currently held in
investments denominated in euros and Japanese yen. Total SOMA Holdings; $8.413,040,534,700
trillion.
Basically, this means, that we are
at the 93,96% of the US Total Assets Held by All Federal Reserve Banks, or 6,04%
from Federal Reserve insolvency as for the average bread consumer understanding
… from Federal Reserve as US central
bank bankruptcy. Off course there is some game played by both Powell and
Yellen as well as by the very first illegitimate President of the United States
which is called riding the gravy
train. The game is going in the A SOMA
Treasury rollover which describes the
process by which principal payments from maturing Treasury securities held by
the SOMA are reinvested in newly auctioned securities. Specifically, the Open
Market Trading Desk (the Desk) at the Federal Reserve Bank of New York places
non-competitive bids at Treasury auctions, in an amount equal to all or a
portion of the maturing Treasury securities, that will settle on the maturity
date of the maturing Treasury securities. On the auction settlement date, the
maturing Treasury securities are exchanged for the newly issued Treasury
securities. This means that for the time being the Biden administration has hope
to survive killing all of US as they did not solve anything just stubbing the US
of America from the back leaving all for the future administration as there be
no way to do something or move any direction.
The U.S. Treasury yield curve
flattened further on Wednesday March 17 2022, as the Federal Reserve increased
interest rates for the first time in three years and set out a path of tighter
monetary policy to fight unabated inflation. The shape of the yield curve is
some key metric investors watch as it impacts other asset prices, feeds through
to banks' returns and has been an indicator of how the economy will fare. While
history suggests it won’t last, an emotion approaching euphoria descended on
equity markets Wednesday after Federal Reserve Chair Jerome Powell persuaded
investors his first interest rate hikes in four years won’t throttle the
economy.
In my opinion former Democrat
present Republican Senator Richard Shelby shall make some form of union with
Senator Joe Manchin and contact me before it be too late; I will give them the
solution upon agreement and all will return to normal. … So far, we have System
Open Market Account (SOMA) at the level of 8,37 trillion as of 09 of March 2022,
what means few weeks left before reach 100% of the FED’s assets either the FED’s
improve these SOMA position. On the Primary Dealers liquidity market situation
become worst and worst from one week to the other.
Off course there is a simple
solution. All we need is about week from the time someone with open mind take
control of the low before the storm. We can simply restore Gov. wallet and begin
to pay back the Debt hold by the public as this is the only way to get out of
this mess.
By Peter von
Roggenhausen March. 17.2022
Oh. Well, as the people saying “Money talks” … so if we had had the necessary fund, you will have the right information at the right time.
