“But It’s Just A 0.25% Rate Hike, What’s The Big Deal?” – Here Is The Stunning Answer

“… according to Skyrm’s calculations, to push rates by a paltry 25 bps, the smallest possible increment, what the Fed will have to do is drain up to a whopping $800 billion in liquidity! Putting that in context, QE2 – which pushed the S&P higher from November 2010 until June 2011 – was “only” $600 billion.” — They won’t do it. The Fed has disassembled this machinery anyways; now they just pay “interest on deposits”. What exactly they’ll jigger to effect a 25bps “rise” is unknown, but we suspect it will have nothing to do with reversing or negating any of QE…