/biz/ - Business & Finance

>>51728791

Reverse Repo is stealth QT. It effectively locks away money out of the economy.

Notice M2 less RRP in pic related (teal line), it started the instant core CPI spiked. That was their reaction and why it was obvious the market was going to struggle. That is effectively shrinking the money supply mid last year.

Money supply changes tend to operate on a lag in their effect, but flat growth or even shrinking is very very bearish in a debt ponzi fiat system like ours. I will note also that RRP is still growing and M2 is still shrinking.

You want to know when the pivot is coming? RRP stops growing, or shrinks. That's the signal the Fed is turning the bear market off.