Fed Liquidity Flood Leads To Record Inflows Into Bonds, EMs And Tech
The crony economy operating at the highest levels. It’s amazing what the Federal Reserve is allowed to do.
Earlier this morning, the Fed had the temerity to lament that “asset valuations are elevated” even as it hinted that as a result of the coronavirus pandemic, which presents a “new risk to the outlook”, it may ease further as if printing money can somehow vaccinate people against a deadly virus. Meanwhile, in response to the repo market crisis last September, which should have been long contained by now, and yet which just saw the two most oversubscribed term repo operations in months this week as dealers literally scrambled for liquidity just as the Fed trimmed the operation by a tiny $5 billion to $30 billion …