The Fed's curtailment of Quantitative Easing was de facto tightening given a continuing Federal deficit of ~3%. Starting from last June, the deficit has exceeded monthly QE.
Subsequently, as we see below, markets have begun to "price in" an interest rate increase:
One year Treasury yields aka. "short-term" interest rates now at .25%
This shows the "resiliency" of global markets after six years of 0% monetary dopium
Here below is that same chart above, on a 20 year scale:
Meanwhile, here below is WHY the Fed is now "tightening"
i.e. because the government's fabricated jobless rate (blue line) has now arbitrarily reached 6% despite employment back at 1978 levels (red line).
I noticed that the red line used to be above the blue line, but everyone 'retired' in 2008:
All while 5 year inflation expectations are falling instead of rising, which is why Treasury spreads are now collapsing, as shown in the previous post:
"We are now investing your money, in imagined realities"
