Eurodollar University BREAKING: The Repo Facility BLEW UP After Fed Meeting (What You MUST Know)
Oct 30, 2025
The podcast dives into the aftermath of the recent Fed meeting, highlighting Powell's cautious stance on rate cuts. Discussion revolves around the early end of quantitative tightening, spiking repo facility usage, and the impact of private credit risk on money markets. Jeff critiques Powell’s dual messaging and the Fed's failure to act decisively amidst repo stress. The conversation draws parallels to past crises, examining how markets are influencing policy changes and what indicators to monitor moving forward. It's a whirlwind of economic insights!
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Fed Accelerated QT Exit Due To Money Markets
- The Fed admitted money-market volatility forced it to accelerate ending QT to December 1st.
- Powell emphasized data-dependence while signaling December cuts are not guaranteed.
Repo Borrowing Jumped Signaling Tightness
- Repo facility usage spiked with $10 billion in morning repo and an afternoon add-on, signaling rising tightness.
- Jeff Snider links the surge to escalating monetary volatility, not yet crisis-level but meaningful.
FOMC Is Split Between Inflation Hawks And Doves
- The FOMC shows clear internal division: some members worry inflation could re-accelerate while others see labor weakness.
- Powell navigates between factions by being cautious and data-dependent.