Another Big Fed Rate Hike

As “expected” the Federal Reserve raised the fed funds rate by another 75 basis points (.75%) today.  We put “expected” in quotation marks because when we started writing about inflation ten months ago, the big Wall Street firms thought we’d get a total of 75 basis points of rate hikes for all of 2022.  We … Read more

Who’s Going to Pay for the Losses at the Fed?

We’ve pointed out more times than we can count that the Federal Reserve currently has around $9 trillion dollars of securities on its balance sheet.  This includes trillions of dollars of mortgage securities its not allowed to own.  The main reason that inflation has been so high this year has been the Fed’s increase of … Read more

First Half Headlines are all Terrible Unless You’re a DKI Subscriber

At this point, you’ve probably read at least a dozen headlines explaining that the first half of 2022 is the worst for the market in over 50 years.  The headlines and commentary we’re seeing are apoplectic.  This came from Barron‘s last night: The first half of the year was terrible. Worst in decades for stocks. … Read more

Losses on the Fed Portfolio – Now They Tell Us

We’ve been critical of the Federal Reserve’s zero interest rate policy which has gone on far too long combined with its $9 trillion balance sheet so many times that it’s not worth putting links here.  A quick check of the DKI blog will show it’s been a topic of interest.  Today, the Wall Street Journal … Read more