Why the economy isn’t responding to Fed policy

 ‘There was a big government-engineered shift in wealth 

from the public sector and holders of government bonds 

to the private sector (i.e., households and businesses).

This made the private sector relatively insensitive to the Fed’s very rapid tightening to a more normal monetary policy.‘

“As a result of this coordinated government maneuver, the household sector’s balance sheets and income statements are in good shape, while the government’s are in bad shape,” 

The historical record around similar episodes rings some big alarm bells, Dalio has argued.

Billionaire investor Ray Dalio, founder of hedge-fund giant Bridgewate

https://www.marketwatch.com/story/a-giant-wealth-transfer-explains-why-the-economy-isnt-responding-to-fed-policy-ray-dalio-220f1233

US Homeowners Real Estate Wealth $28.7 trillion rpt trillion

https://englundmacro.blogspot.com/2023/07/us-homeowners-real-estate-wealth-287.html

Consumes and investors feel rich because they are rich.

https://englundmacro.blogspot.com/2023/06/why-bulls-are-running-and-consumers-are.html