Bonds, Stocks, & Bullion Battered As Powell Shrugs Off Liquidity Crisis | Zero Hedge

KW: Seemingly there is a crisis unreported here in NZ but one that is affecting everyone globally. Market risks are exploding as a liquidity crisis hits U.S. markets, one that the FED is ignoring as irrelevant it appears. FED Chair Jay Powel did cut interest rates by 0.25% however. One correspondent writes “So the Federal Reserve put on its overalls, grabbed its wrench… and pried open the liquidity taps. $125 billion of emergency funding came flooding in these past two days. And so — for the first instance since the financial crisis — the Federal Reserve ventured upon “repo” operations to lubricate the financial machinery. These “repos” — or repurchase transactions — increase reserve balances in the banking system. And this liquidity sets the machinery whirring again. Reuters in summary:

[The Fed made] an emergency injection of more than $125 billion over the past two days, its first major market intervention since the financial crisis more than a decade ago, to prevent borrowing costs from spiraling even higher.

They ask… Is the Federal Reserve losing control of interest rates? And have we just felt the first foreshock of a credit crisis?

There is so many risks globally right now with Pompeo rushing to cheer up and support his murdeous mates in the brutal Saudi Arabian rigime having sufferred an embarrasing attack from Houti rebels In Yemen.

“They have no implications for the economy or the stance of monetary policy.”

Source: Bonds, Stocks, & Bullion Battered As Powell Shrugs Off Liquidity Crisis | Zero Hedge