The battle between inflation and maintaining easy monetary policy in the US is starting to show tangible signs of blowing up. As we discussed last week, the Fed are choosing a lower inflation metric to justify their easy money policy, and even the official CPI is understated having long ago removed house prices which are on fire in the US. On the other side last week saw the Fed have to drain over $350b in one day on the REPO market as banks drown in all their printed money, nearly $300b of which they ADDED on that same day….
