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IPFS News Link • Federal Reserve

From Correction To Carnage: The Fed Is Walking A Tightrope

• https://www.zerohedge.com by Sven Henrich

Easy, let markets drop, but not so much that it causes a systemic event but enough that year over year inflation numbers drop, declare victory and then flip flop policy again to prevent any major damage to markets by the time mid terms are on everybody's mind."

On January 4th $SPX made an all time high and we've gone down ever since.

$SPX -11% from the January highs, $NDX -17%, small caps -20% from their 2021 highs and of course crypto getting mauled. In short everything we've been talking about for the last year. Liquidity goes and the bid goes. In this case the liquidity hasn't really gone at all, they just talked about it. And speaking of liquidity: One source of liquidity that has disappeared, buybacks, is coming back again starting this week and more forcefully into February.

But the main point: If the goal was to fight inflation by letting markets drop to take some of the excess out without actually tightening in a major way: Congrats, mission accomplished.


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