1) Powell is Sunsetting the Fed Funds Rate: After these constant interest rate hikes and the Fed breaks Europe and destroys the offshore dollar market, Jerome Powell may sunset the Fed Funds Rate and completely replace is with the Secured Overnight Funding Rate.
2) The Fed’s goal is to re-assert its credibility and gain back monetary independence. Powell is already flirting with ending the Fed Put because the Fed Put is very much a globalist idea. Why not end FFR as well is SOFR divorces the Fed from the arbitrary globalist rate, LIBOR?
3) If the Fed trusts the “market rate” btwn US banks & it’s helping bring capital to US (SOFR), wtf is the point of the FOMC coming out to save the day with a separate rate if SOFR is taking care of it all and if everything is going great? Powell wouldn't be in as big of a pickle
4) I think SOFR could replace FFR. If the Fed wants its credibility back and is even considering ending the Fed put, what's the point of that central planning from there? Would this not be in-line with the legacy Powell wants to leave? He retired “transitory”, why not FFR?
5) Is (was) LIBOR not the FFR for over seas (AKA the offshore/Eurodollar market)??? Yes. Which is the cancer against the Fed by undermining its credibility by “printing” more dollars than the Fed itself. Which is what Powell/US banks are working to destroy.
6) the new benchmark rate would be determined by the 12 regional banks, which is what SOFR is. Therefore, 86 (end) the Fed Funds Rate for complete US monetary independence. Additionally…
7) isn't every other country in the world indexing their new secured rates to SOFR? Is that not what KOFR is?…So if THAT’s the case, the new system is already being stealthily implemented…just as Powell has been stealth tightening since last June when he raised RRP by 5 bips
8) A little birdy told me that Martin Armstrong always laments that when the Fed was being constructed, the single US interest rate was 12 regional Fed Funds Rates. W a fully integrated banking system/electronic money markets, why not simply consolidate those 12 rates into SOFR?
9) As of January 2022, all new US domestic debt has been reindexed to SOFR. If it became the new benchmark rate, it would free up local financial activity/enable regional rates to develop on their own. Almost like a (dare I say) fReE mArKeT?!?
10) This is just a theory, but I can see why this would be the Fed’s intentions and incentives. Powell is no Austrian economist, but he’s also no academic globalist like Bernanke/Yellen before him. He has a job to do: take back US monetary policy. Recall, “until the job is done.”
1) THREAD UPDATE!
The following article from 2019 post the September repo spasm of that year further confirms the Fed’s plan to ditch the Fed Funds Rate and fully replace it with SOFR. See article below in attached tweet