You Know It's Bad When...

 

....the Fed's Token "Hot Girl" Lael Brainard who has in the past been the mindless blonde Barbie of the Eccles Building that thinks MMT is just swell comes out with the following press release:

"She said that the central bank would move to “rapidly” shrink its nearly $9 trillion balance sheet this year, unraveling the huge bond-buying program launched at the start of the pandemic, while also hiking rates.

Brainard’s commentary “cleared the way” for a super-sized interest rate hike at the Fed’s next meeting in May, according to Bespoke Investment Group.

That sparked a strong response across financial markets. After Brainard spoke, the yield on the benchmark 10-year US Treasury note hit its highest level in nearly three years, soaring to 2.56%. Bond yields move opposite prices, so that indicates a sharp sell-off.

Stocks also fell. The S&P 500 finished down 1.3%, while the Nasdaq Composite shed 2.3%. Investment-grade corporate bonds logged their biggest one-day decline since March 2020."

This is the same stupid bitch that in 2016 was a Janet "easy money" Yellen ally who drug her high heels against raising rates off of the floor.  This dumb ass is only now having a come to Jesus moment in the realization that keeping rates at zero and buying up every security at full face value for years has consequences.  Now she is "steppin' and fetchin' like her sweet ass is on fire and her hair is catchin'".  Way to go dumb ass - my guess is that you, crazy eyes Kashkari and token black gay man Bostic have a little more in common than just a penchant for easy money policy.  

Make no mistake, the Fed is only just now realizing that by playing with matches for the past several years, it has stupidly managed to set its own house ablaze.