The Fed Warns The ‘Drop In Asset Prices Might Be Particularly Large’

The Fed Warns The ‘Drop In Asset Prices Might Be Particularly Large’ by Jesse Felder – The Felder Report

The stock market today is celebrating the rapid reversal in the Fed’s hawkish attitude under the tenure of Jay Powell.

Surely there are some measures that suggest the extent of the current monetary tightening campaign has already surpassed that of those of the recent past.

But if the Fed is now backing off because monetary tightening has already exerted its typical effect on the credit cycle this is certainly not bullish for risk assets.

In this vein, the Fed made another announcement today in releasing its first ever Financial Stability Report. The following passage caught my eye.

Working backwards through this excerpt let’s first look at this corporate “sector where leverage is already high.” In fact, it’s higher than at any point over the past couple of decades.

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Rory Hall, The Daily Coin. Beginning in 1987 Rory has written over 1,000 articles and produced more than 300 videos on topics ranging from the precious metals market, economic and monetary policies, preparedness as well as geopolitical events. His articles have been published by Zerohedge, SHTFPlan, Sprott Money, GoldSilver, Silver Doctors, SGTReport, and a great many more. Rory was a producer and daily contributor at SGTReport between 2012 and 2014. He has interviewed experts such as Dr. Paul Craig Roberts, Dr. Marc Faber, Eric Sprott, Gerald Celente and Peter Schiff, to name but a few. Don't forget to visit The Daily Coin and Shadow of Truth YouTube channels to enjoy original videos and some of the best economic, precious metals, geopolitical and preparedness news from around the world.