Friday War Room, 10-noon & 5-7PM Eastern

1) The Fed Open Market Committee just announced it remains committed to reducing inflation - and just announced it will maintain a monthly cap of the amount of Treasuries it will hold (the amount of debt it will monetize in other words) at $60 billion.

https://www.crainscleveland.com/economic-outlook/federal-reserve-boosts-key-rate-quarter-point-amid-banking-woes

At the same time,

2) The Fed also just announced it has opened wide the 'Discount Window' - where insolvent banks (like SVB) can borrow freshly printed money from the Fed if they're desperate - and that activity just skyrocketed from $4 Billion on March 9 to $153 billion on Wednesday.

https://www.americanbanker.com/news/feds-super-discount-window-issues-12-billion-of-advances-in-three-days

In short the Fed is screwing the little guys with higher interest rates while bailing out the elite guys at the Discount Window.

That the WH and Fed continue to maintain they are curbing inflation is laughable. They are clearly not interested inflation per se with these conflicting policies -- they are playing politics and helping out favored donor groups as our capital markets circle the drain!...

And the insolvent banks borrow at “the discount rate” — an artificially-low borrowing rate. Just another way of subsidizing cheating, communist rent seekers. If I’m late paying my tiny credit card bill, the Fed doesn’t subsidize me like this! 🤬

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.