Today’s Quill will be short and sweet. The taper is upon us. But that is a red herring compared to what’s happening within the Federal Reserve. We don’t have the time to exhaustively document the analogies. What’s occurring behind doors could have been authored by Machiavelli and fits the scripts of The Prince to Game of Thrones and Succession.
The Biden Administration is clearly paralyzed and terrified. The only type of Fed leadership they want is akin to drones that take standing orders. As for the backdrop, stocks keep making all-time highs, which just gives them a higher cliff from which to fall if this Fed leadership transition is in any way disruptive. After Virginia and a host of other races including four city council seats in Brooklyn, Queens and Staten Island, it’s equally evident that woke is not where enough Americans want to be to push forward the progressive agenda. What legislation is to come will be further watered down.
And then there are the deadlines. By last week, the United States had fully depleted the $480 billion in new debt authorized in a bipartisan deal brokered last month. The country will need more funds and the clock is ticking. Treasury is already taking “extraordinary measures” to avoid default. A fresh extension will likely be needed. Good luck getting it.