Global liquidity has dropped by $1 trillion in the last 10 weeks, with $4.2 trillion dried up since 2022’s high, returning to pre-pandemic levels…. The Federal Reserve is currently in a difficult position

Global liquidity is down a massive $1 trillion over the last 10 weeks.

Since the high in 2022, $4.2 trillion in global liquidity has dried up.

We are now back down to pre-pandemic liquidity levels.

After printing and handing out $4 trillion in stimulus while lowering rates to… pic.twitter.com/5EjHi663Ga

— The Kobeissi Letter (@KobeissiLetter) September 11, 2023

The mark-2-market for banks Q3 with 10 year T note at 4.25% will be ugly. Marty's Chart 7 ~ $1 trillion negative?? Average coupon on 1-4s has just barely reached 3.5%. Banks selling securities and the QE rejects, buying prime 1-4s….

— Richard Christopher Whalen (@rcwhalen) September 10, 2023

Has the Fed specifically addressed their confidence that the 2020s won't repeat the 1970s, which had three waves of inflation driven price increases before inflation was calmed? Especially given the ongoing (and increasing) deficit spending of today? t.co/h6KDZR1fh5

— David Sommers (@dgsommersmkts) September 10, 2023

BREAKING: Auto loan debt in the U.S. currently stands at $1.5 trillion, a record high, per CNBC.

— unusual_whales (@unusual_whales) September 11, 2023

“Every time oil is up, interest rates are up, and the dollar is up, things don’t tend to go well." pic.twitter.com/81UNJYbDs4

— Don Johnson (@DonMiami3) September 11, 2023

The last 3 times this happened, USD saw more upside in the near term

Weekly momentum (MACD) is on the brink of crossing above the 0 line for the first time in over a year pic.twitter.com/qRvS5HZnv5

— Game of Trades (@GameofTrades_) September 11, 2023

The Fed can’t print oil. Our fake CPI stats will be even more falsified as energy prices grind higher.

Oil’s upward price movement is making the Federal Reserve’s path toward a 2% inflation target more difficult.

The crude market’s rise is likely to have lifted overall inflation last month. And while core inflation — which strips out food and energy costs — has been on a downward trend, economists worry that higher energy prices could increase input costs for goods and services, leading companies to raise prices on everything from airfares to furniture.

“I’d say the rise in oil prices since late June/early July has clearly put upward pressure on gasoline prices and will lead to a large boost in the August headline CPI [Consumer Price Index],” Omair Sharif, president of Inflation Insights, tells Yahoo Finance.