The idle Process

Although the Fed decided to extend the repurchase operation plan (to market funding) that ended on October 10 to the beginning of November, Wall Street’s worries about the resurgence of the dollar in the short-term financing market in the fourth quarter have not decreased. A Wall Street hedge fund manager admitted to the reporter that the dollar shock wave in the fourth quarter will be more severe than the US overnight lending rate in September to a record high of 10%. On the one hand, the corporate tax pressure is coming again at the end of the fourth quarter, plus the bank is satisfied. Regulatory requirements need to be fully funded, resulting in a large amount of funds that banks are placing on the market. On the other hand, the US bond yields continue to fall, and the downward pressure on the US economy is increasing, which is forcing a large amount of overseas capital to withdraw a large amount of funds from the United States. This will increase the short-term financing market

The stock market is rotten. Despite the great uncertainty, the VIX is still low, no matter good news or bad news, the stock market keep growing. It is totally controlled by the Wall Street. The FED also has problem. Not like Alan Greenspan and many other President of FED, Jerome Powell has a strong boss, Trump, he insist the FED should cut interest rate. No president in history interfare FED like this ever. There is big possibility that FED compromise.