The Stealth Fed Buys More Bonds

They really think we're stupid...

Dear Fellow Traveler:

The Fed bought $53 billion in bonds over the past week and a half.

Yesterday alone, they grabbed $9.5 billion in 5-year notes. Last week, it was $43.6 billion across different maturities, including a big gulp of 30-year paper.

You probably missed it. No Powell press conference. No dramatic headlines.

Just quiet buying while everyone else watched earnings reports and argued about tariffs.

This is like your spouse saying they're cutting back on spending while secretly maxing out credit cards. The Fed keeps talking about "restrictive policy" and "higher for longer" rates, then turns around and repurchases bonds.

The excuse?

They're just "reinvesting" money from bonds that have matured.

Right.