Federal Reserve Quietly Sheds $1 Trillion in Bonds, Hurricane Lee Intensifies, and Biden Support Wanes Among Democrats: Key Updates

The Federal Reserve has quietly reduced its bond holdings by about $1 trillion since last year, testing market resilience amid quantitative tightening.
Farm debt continues rising amid strong loan performance but margin challenges for farmers.
House Speaker Kevin McCarthy may attach controversial immigration policies to Ukraine aid, risking delays.
Hurricane Lee strengthens into a dangerous Category 5 storm in the Atlantic, sparking concerns.
CNN poll shows declining confidence among Democratic voters for Biden in 2024, with 67% wanting an alternative nominee.

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9/18/2023

Yellen Unconcerned About Rising Debt Levels But Warns More Fiscal Prudence May Be Needed

US Treasury Secretary Janet Yellen believes that despite the national debt nearing $33 trillion, the federal government's debt burden remains under control due to the net interest as a share of GDP remaining at a reasonable level. However, critics warn of the potential risks of a growing debt and credit bubble. Additionally, Yellen hopes for a quick resolution to the United Auto Workers' strike, stating that the economy remains strong overall.

10/6/2023

Fed Unfazed by Bond Rout, Plans to Continue Reducing Balance Sheet Despite Tighter Financial Conditions

The Federal Reserve is expected to continue reducing its bond holdings despite the recent surge in bond yields, as key measures of volatility and liquidity in the bond market are not indicating a significant risk, and higher credit costs align with the central bank's goal of restraining growth and lowering inflation.