Week of Oct 3 | Notion

They’re up their own asses with jargon
Asked about UST illiquidity, Waller says it's about prices and compares it to selling pumpkins post-Halloween: "On Oct 31, the liquidity for pumpkins is very high. But on Nov 1, the market liquidity for pumpkins goes to zero. I'm not going to step in and try to fix [that] market”

Is he comparing the functioning of the US government bond market to pumpkins?
FSOC Meeting
"The greatest deception men suffer is from their own opinion." -Leonardo da Vinci, c. 1500
Market fundamentalism: People looking at moves in financial market moves, and taking them as Verdicts on the merits of a given policy. "Gilts sold off, ergo the underlying policy must be terrible”
A Bedrock Commitment to Price Stability
- Tighter monetary policy has begun to cool demand and reduce inflationary pressures, but our job is not yet done. It will take time, but I am fully confident we will return to a sustained period of price stability.
Eight Charts That Show Just How Much Markets Have Changed This Year
Young Versus Old Will Define Fight Over Public Pensions
- I expect something like Social Security reforms. A cap will cut benefits for people receiving the highest pensions, and states will put tax surcharges on benefits for high-income people even if they have moved out-of-state. Copays and deductibles will be increased for health coverage.

💵Federal Reserve

Kashkari indicates he expects “failures around the global economy “ but he’s okay with that. Maybe paying attention to rate of change should be as important as destination. But hey - we know Fed’s willing to tolerate some fender benders as it races ahead.
As Global Recession Looms, a Perilous Moment for Central Banks
- The distributional impact of high inflation depends a bit on the sources of the inflationary shock. Inflation driven by higher prices of heat and food hits those with low incomes particularly hard.
Fed’s Bostic Favors Raising Rates as High as 4.5% by Year-End
Midterms: Fed Chair Jay Powell is whacking the economy with a giant sledgehammer just ahead of a big election. First time that's happened in decades. People don't hate him for it yet. But they will. And he knows it.