Mr. Powell, did the Fed bail out failing hedge funds last month?

New Fed chief Jerry Powell is set to testify Thursday in front of the Senate Finance Committee. In his Tuesday session in the House, Powell hinted that four rate hikes may be needed this year.

I believe today’s discussion will sound more like what I predicted the House testimony should have sounded like.

My big question to Powell would be can he explain what happen early last month where the Fed’s weekly balance sheet reports exploded by $14 billion during the market turmoil surrounding the VIX volatility spike.

From all indications I see, it looks as if the Fed did a three-day QE4 operation in conjunction with the Plunge Protection Team, to buy up toxic VIX short instruments that were way out of the money before some hedge funds would have been forced to liquidate and shutter.


Gun maker shares are falling sharply this morning after President Trump said he was in favor of restricting sales to minors and the mentally ill following the Florida school shooting last week.

In an abrupt reversal from the previous decade where firearm shares would soar on news of a mass shooting for fear of legislation, share prices fell after the Florida shooting.

Now with a Republican leader saying he is open to curtailing some gun sales, shares are nearing 52-week lows on the news.

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One thought on “Mr. Powell, did the Fed bail out failing hedge funds last month?

  1. Pingback: Mr. Powell, did the Fed bail out failing hedge funds last month? via /r/economy | Chet Wang

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