Axel Merk
@AxelMerk
Founder Merk Investments. USD ~2.5bn in precious metals. Weekend rancher. tweets ≠ advice
1.1K Following 21.6K Followers
Did you know that both doves and hawks can fly?
Today's dove/hawk scale is in the top panel; contrast it with the scale from before the Iran war, at the end of February.
Categorization by Bloomberg's BQuant.
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@BlakeFox7 @DiMartinoBooth The Fed can't change fiscal policy, but the Fed can stop being an enabler.
It takes a while to turn that large ship. Changing the ample reserve regime will face tremendous resistance. Not going further down fiscal rabbit holes is already progress in my book.
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@DiMartinoBooth Adding to your point: Treasury is the right place to do this. The Fed is rightfully on the sidelines.
@DiMartinoBooth @chigrl @AnthonyCrudele Note the 'precision': "Treasury is increasing, by at least double"
That is, it's all about signaling. And what better time to provide such a signal when liquidity is lower in the middle of August.
You might think Bessent has a trading background. Oh, wait, he does...
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