The Fed is headed for an annual operating loss for the first time in 108 years. They will soon be forced to print the money to cover their expenses. A conundrum, indeed!
Should the Fed pay attention to the IMF’s warnings about global financial risks and deteriorating market conditions? Probably, but more red-hot inflation data means their hands are tied.
Alternative measures of inflation from the Cleveland and Atlanta Fed point to underlying pressures that threaten the “transitory” nature of this inflationary episode.
The U.S. stock market surges higher as investors refuse to look at alternatives, even as the government risks defaulting on its debt and jeopardizing the U.S. dollar.