Hey There Income Hunter,

 

I’ll be blunt.

 

I always expect the Fed to be lying about something.

 

So, as I updated my Power Income Trader Policy Gauge data yesterday and noticed the Fed executed $90 billion in QE, I took it in stride.

 

I may have mumbled a few F-bombs, but I knew they had to be doing something to help the housing market after 30-year mortgage rates rose above 5%.

 

March was supposed to be the first month of zero QE and the central couldn’t even hold out that long.

 

Here is the year-to-date data … 

 

 

I just want to see one reporter have the guts to call Jerome Powell out on this at the FOMC Q&A season on May 4. 

 

Here’s the thing: The Fed has all types of tricks up their sleeve.

 

Today I’ll reveal through them so you have an idea what goes on behind the scenes …

 

Powell the Magician

 

I always said Powell was a better magician than politician.

 

• If you listen to the Fed speak (lying), Powell always said the Fed’s plan was to do a minimum of $120 billion of QE. Many months they did much more … 

 

• Now as they start to taper, he says they could not commit to an exact amount – and they go out and buy $90 billion in mortgages.

 

• With $90 trillion in total debt and another $168 trillion in unfunded liabilities, the Fed can just announce yield curve control (YCC), which means they buy up the debt that no one wants anymore … and let the dollar collapse so we can reset our economy and become a manufacturing powerhouse once again. 

 

The bottom line is we need a really weak dollar so we can build back our manufacturing economy. If the dollar were to weaken, our goods would be cheaper for our foreign trading partners. 

 

I think most Americans would agree that we should surrender our role as the reserve currency and worry about getting our own house in order to improve the quality of life for all Americans. 

 

Instead, the Fed is worried about holding up the housing market by keeping a lid on mortgage rates as they rightfully rise with inflation …

 

Here is the latest survey showing fixed and variable rates … 

 

 

 

In yesterday’s Power Income,I mentioned how the Fed manipulates interest rates and that has put us in the position we are in now. 

 

A healthy economy can support itself through competition and productivity but the Fed has lived by the sword of manipulation – and will die by it, as well.

 

Bring It Home

 

I read a report today that said 92% of homeowners say that their current home is affordable and 91% of lower-income homeowners say the same thing, up from just 79% at the end of 2017. 

 

Now, thanks to supply-and-demand dynamics, increased mortgage rates are likely to mean higher home prices.

 

By trying to control interest rates the Fed disrupts normal supply and demand dynamics, which is why we don’t have a real economy any more …

 

But at the same time it makes it easier for us traders to beat them at their own game …

 

After yesterday’s rally in QQQ, there is a good opportunity to sell the rip. With 30-year rates hitting 3% the wind is at your back on this one …

 

Live and Trade With Passion My Friend,

Griff