by Turd Ferguson
TF Metals Report
After their obvious and deliberate attempt to manipulate the bond market these past 48 hours, I think it has become clear that The Fed does, indeed, intend to raise the Fed Funds rate when they meet in two weeks. Why they are doing this and what they hope to accomplish is what we attempt to explain in this podcast.
I’ve claimed all along that The Fed CANNOT raise the FF rate, if anything because they would flatten the yield curve and worsen the economy even more. This manipulative move in treasuries is quite clearly an attempt to raise long rates in order to give The Fed “room” to raise short rates…so, when taken together, there is no discernable change to the slope of the curve. The move to raise long rates also helps the BoJ and the ECB, as we explain in this podcast.