Derek Moore reviews the range of potential moves the Federal Reserve may take given rising inflation. Will the Fed reduce their monthly purchases? What does the Fed Fund probability tracker show the market is expecting interest rates to be? What about the trillions of dollars the Fed is doing in the Overnight Reverse Repo Market?

Monthly Fed purchases of MBS and Treasuries

$1.5 Trillion in Overnight Reverse Repos

Fed Rate Hike Probabilities

Chairman Jerome Powell gets more hawkish?

Inflation effect on interest rates?

Effective Fed Funds Rate

Will raising inflation actually reduce inflation?

Inflation nowcast indicates higher inflation in December

Mentioned in this Episode:

Contact Derek Moore derek.moore@zegafinancial.com

Previous Podcast: What are Reverse Repos? https://podcasts.apple.com/au/podcast/what-are-reverse-repos-and-repos-fed-enters-overnight/id1432836154?i=1000523659106

Derek Moore’s Book Broken Pie Chart https://www.amazon.com/Broken-Pie-Chart-Investment-Portfolio/dp/1787435547?ref_=nav_signin&

Federal Reserve Balance Sheet h.4.1 https://www.federalreserve.gov/releases/h41/current/

Effective Funds Rate NY Fed https://www.newyorkfed.org/markets/reference-rates/effr

Fed Rate Probability CME site https://www.cmegroup.com/trading/interest-rates/countdown-to-fomc.html#

Inflation Nowcast Cleveland Fed https://www.clevelandfed.org/our-research/indicators-and-data/inflation-nowcasting.aspx

Fed Overnight Reverse Repurchase Activity https://fred.stlouisfed.org/series/DTB3#0

3-Month Treasury Bill Rates https://fred.stlouisfed.org/series/TB3MS