The Fed is Losing Control of Credit Markets

Despite announcing an interest rate cut on Wednesday, Jay Powell and the Federal Reserve have not done enough to quench the "market's" thirst for liquidity. We see this is the case in this week's spike in the repo rate, which indicates the banking system as a whole is short of cash and we probably will see another financial crisis in the near future if not for a series of heavy handed interventions by the Fed that essentially amount to a fourth round of Quantitative Easing.