The Mnuchin-Powell Affair over the Fed s Special Purpose Vehicles in Dollars & Effects | Wolf Street

Fed Chair Jerome Powell replied on Friday afternoon with his own Dear Mr. Secretary letter to Treasury Secretary Steven Mnuchin s Dear Chair Powell letter on Thursday. Both letters were full of compliments for the other and for their cooperation and for their success in inflating asset prices. But with regards to asset prices in the credit markets, Mnuchin s letter gave specific metrics and said enough is enough. And Powell s letter said, OK, the Treasury can have the taxpayer money back that it sent us.

You d think something earth-shattering happened based on the media hullabaloo that ensued.

via wolfstreet.com