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Post-Fed the new market buzzword is SLOOS - here's what to know

May 04, 2023 6:39 AM ETBy: Kim Khan, SA News Editor39 Comments
Red Handle Rubber Stamper and Credit Application - Denied text isolated on the table.

syahrir maulana/iStock via Getty Images

Wall Street has a new acronym to focus on: SLOOS.

Federal Reserve Chairman Jay Powell's mentions of tighter credit conditions in his post-decision press conference Wednesday caught the attention of market and Fed watchers. That, in turn, heightened anticipation for the release of

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Comments (39)

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Does SLOOS take into consideration the enormous amount of mid to large tier company lending that is proliferating in the nonbank hedge sector. Sixth Street just help lead the restructuring financing at Bed Bath and Beyond.

Many borrowers today don’t even bother with Banks. So does SLOOS really give you the whole picture.
Powell will get his 2% target, damn the torpedoes.

If SLOOS doesn’t get it done, he will no doubt raise rates again and don’t expect cuts anytime soon…certainly not in 2023.

Hey Powell! Next time the Black Swan comes calling; DO NOT COME TO THE RESCUE! Take your QE and your QT and cram ‘em up your BOO-T.
Powell needs to spend less time enjoying scotch at Madame’s and more time studying how to steer a barge through a canal, where overdoing it can push the ship over the walls into a pack of kids on a field trip
Mike2021 profile picture
Do they really need a survey to tell them that people borrow less when rates go up?
mosky moc profile picture
why do recessions always occur when dems are in power 🤔
Shamanski profile picture
@mosky moc
what are you joking?
You are incredibly misinformed.

-11 of the last 12 recessions all under the GOP.
- Every single Republican has had at least one recession dating back to Teddy Roosevelt. Yikes !
-In that same time frame only 1 dem has had a recession.

All of our recessions are from the republicans. Only 1 recession was under a dem.

I think it is time for republicans to stop watching fake news, its scary how misinformed republicans are.
@Shamanski Really................he is 100% correct. The present occupant at the White House is systematically ruining the country.
mosky moc profile picture
fact: 11 out of 12 recession were preceded by a dem controlled administration
if the current recession can be blamed on the previous admin, so can all of them going back to teddy
Chris Lau profile picture
SLOOS(hing) money about
SL(OW) - "transitory
sLOOSe monetary policy

Bottom line is no rate cut in June. Full stop:
rhythmbreakdown2 profile picture
@Chris Lau

The Fed is in deep and cannot get out. Full stop.
@rhythmbreakdown2 Powell has made a hash of things. Half stop. (Just to be different.)
GR Value profile picture
Since the rich take out all assets from almost all companies and hoard it, leaving debt, risks and low amounts of liquidity, I'd argue paying anything close to large premiums for stocks no matter what rates are is laughable and tantamount to double counting.

This factor is also why you can't easily tax the income side to solve inequality stagflation because income through proxy companies is a product of future printing and bankrupt consumers.
@GR Value I don't understand your 2nd paragraph but a good start would be flat taxes on personal income that begins after a living wage has been earned. Have an increased level of flat taxes on people once they go over a million dollars (million dollars just tossed out as an example)

of course more federal revenue just means more options for both parties to piss it away by increasing spending

economic inequality is a big issue but you always seem to miss the very bottom end that basically live off the government

it's the working people in the lower to upper middle class that are getting screwed but not getting kissed in the U.S.
GR Value profile picture
@Term Limits For Parasites you can't easily derive a living wage or tax revenues from proxy corporations which the rich leave generally insolvent at all times and mostly a product of future revenues, which is derived solely from printing given inequality.

Hence the only way to solve the problem is to look at both asset and income side. Congress is not even looking at income. The IRS doesn't even make the rich pay legal taxes. They evade up to 700 billion a year reports state.
@GR Value california has the highest tax base but there are mass homeless camps everywhere. Just because you tax people doesn't equate to dissolve inequality
SeriousUsername profile picture
No its not, noone ever said or used that term.
Dividend Seeker profile picture
SLOOS is transitory
Crypto Wealth Destruction profile picture
If only we could make it harder for congress to borrow $$$ this nation could finally turn around.
mosky moc profile picture
@Crypto Wealth Destruction oy vey this is anti-semitism
I believe can't so many capitalists are coming out of the woodwork and asking for handouts (aka rate cuts) and asking us to about think of the collective (aka telling depositors not to withdraw deposits from banks.)

Shameless turncoats.
Shamanski profile picture
@ding dong
“The Federal Reserve should get our interest rates down to ZERO, or less, and we should then start to refinance our debt,” adding that “the USA should always be paying the the lowest rate.”

-Trump in 2019

Trump gave us 25% of our total debt in just 4 years.
@ding dong hmm. Can you believe the Socialists are screaming for "more/higher handouts?"
@Shamanski And Obama have over 110% increase in debt (far more debt than ALL past administrations combined for about 240 years) in only 8 years. Bush left with 9 Trillion on the books. Obama left with over 20 TRILLION of debt and "woefully unprepared) for the pandemic Trump had to deal with.
I'm surprised SA hasn't mention this

US Treasury announces first buyback scheme in decades to boost liquidity


in context, US treasury market is tight. nobody wants older bonds with low yield and the holders are refusing to buy new bonds. The feds will pay par and assume an unrealized loss until maturity so bond investors can buy new bonds. Essentially a pyramid scheme with taxpayers being bag holders if the debt ever goes bad.

and you wonder why the yield is inversed and growing larger
It is a Top profile picture
@Finding Your Retirement
"Essentially a pyramid scheme with taxpayers being bag holders if the debt ever goes bad."

The Fed is independent and doesn't need tax payer money. Any "losses" would be paper losses with no need for tax payer money.
@It is a Top The debt will not go bad. There is no credit risk to Treasury’s. Interest rate risk, yes; reinvestment rate risk, yes; but no credit or liquidity risk.
It is a Top profile picture
"The debt will not go bad. There is no credit risk to Treasury’s. Interest rate risk, yes; reinvestment rate risk, yes; but no credit or liquidity risk."

Their is no risk of any kind for the Fed.
FirstFIREWealth profile picture
Cut, cut, cut!

A Trump's appointee "masterpiece" at work. For a guy who loves to brag about how big 401ks are, his pathetic appointee is killing our 401ks.
Shamanski profile picture
The failures of Bush and Trump will continue to haunt us for years.

Republicans are so bad that not only do they destroy the country during their presidential term, but then their failed policies and appointees continue to destroy the country years after they leave office.
Money&Money,LLC profile picture
Lets go J'Pow!!! Higher for longer!!! Back to the great days when everyone pulled their own weight, instead of freeloading off of those who worked hard and saved.... 4-5% savings rates...5-6% mortgages....2-3% inflation...... Get to work, stop trying to grift others like this current Administration is doing.
elwalle profile picture
😂,.........you cannot be serious
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