New Found Gold Corp V.NFG

Why the Fed will loosen later in 2024

[nozzpack]

It will have no choice as USTs needed for its Reserves have fewer and fewer buyers

https://www.zerohedge.com/markets/us-treasurys-funding-mix-will-be-pivotal-feds-next-moves

[Global1966]

Not if the phony payroll numbers keep coming in as they are. And no one takes notice of the revisions that say the original numbers were only pretend ones. There may be one small cut in December, post election.

[Dixiedee]

If the FEDS don't cut in June they will not cut at all in the rest of 2024 would be looked upon as interfering with election but then again interference seems to be something both sides currently engage  in will have to see if FEDS pick sides or not Iam guessing NOT rates are not finished rising yet they may come down temporarily at some point but they will go up from todays rates USA

[nozzpack]

Bank failures, interest costs of the US debt and difficulty to sell USTs will force the Fed to either cut rates or print money...which is the same...weaken the USD..

[Dixiedee]

they may have to raise rates to get people to buy their debt the Tbills and the bonds  more debt = higher interest rates not lower 

[nozzpack]

Raising rates means that debt interest payments and defense spendung will swallow  75% of Govt cash inflows, essentially collapsing discretionary spending and the US economy with it .....forcing more printing ..

[Dixiedee]

interest rates will go up if the people goverments etc who are buying their debt demand higher rates to purchase the bonds tbills etc more demand for borrowing means higher rates China India Japan Russia even Europe are buying less USA bonds and Tbills rate will have to go up to encourage them to continue buying or buy more  printing and distributing the cash through activity supporting war