Federal Reserve Watch: Quiet Week

Aug. 12, 2022 12:12 PM ETSPY, IVV, VOO, VTI, DIA, IWM, QQQ5 Comments
John M. Mason profile picture
John M. Mason
16.14K Followers

Summary

  • The past week seemed to be a quiet week for the Fed, as the Fed's balance sheet hardly changed.
  • Still, stock prices continued to rise, even with Fed members talking up further increases in the Fed's policy rate of interest.
  • Do investors understand something that we don't understand, like the current actions being taken by the Fed, are not really sufficient to overcome the liquidity already out there?
  • Maybe we need to listen to what the financial markets are telling us and not just listen to what Federal Reserve officials are saying.

Interest Rates and The Federal Reserve - Sunset

Douglas Rissing

There was a lot of new information being released this past week and there was a fair amount of volatility taking place in the financial markets, but, if you look at the balance sheet of the Federal Reserve, very little took

Federal Funds Rate

Effective Federal Funds Rate (Federal Reserve)

Excess reserves

Reserve Balances With

Securities Held Outright

Securities Held Outright (Federal Reserve)

This article was written by

John M. Mason profile picture
16.14K Followers
John M. Mason writes on current monetary and financial events. He is the founder and CEO of New Finance, LLC. Dr. Mason has been President and CEO of two publicly traded financial institutions and the executive vice president and CFO of a third. He has also served as a special assistant to the secretary of the Department of Housing and Urban Development in Washington, D. C. and as a senior economist within the Federal Reserve System. He formerly was on the faculty of the Finance Department, Wharton School, the University of Pennsylvania and was a professor at Penn State University and taught in both the Management Division and the Engineering Division. Dr. Mason has served on the boards of venture capital funds and other private equity funds. He has worked with young entrepreneurs, especially within the urban environment, starting or running companies primarily connected with Information Technology.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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