JEPI - Weekly Commentary: The Reality Of Financial Dominance

• The federal deficit for the first quarter of the new fiscal year was reported at $573 billion, up 61% y-o-y. Washington borrowed 45 cents of every dollar spent during the quarter.
• It can be called "Financial Dominance" or the layperson's "trapped," but markets operate today with high confidence that the Fed has no alternative but to maintain ultra-easy conditions - zero rates, massive ongoing balance sheet growth, and whatever it takes market liquidity backstopping.
• At this point, I doubt an "exit" will ever be possible. Count me skeptical of the nice scenario of the "very transparent" Fed clearly communicating an approaching taper to a calm and rational marketplace.

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