22 Apr 2024
Financial conditions in the US are tightening as rates rise, equities fall and we see liquidity diminishing.
This setup could be set to continue as long as we see: 1) Signs of inflation remaining sticky or re-accelerating 2) The Fed cautious about the timing of cutting 3) Large deficit spending amid rising rates causing interest rate spend to surge (could hit $1.6T by Dec y/y w/o a rate cut) Source: Markets & Mayhem
16 Apr 2024
According to Alfonso Peccatiello, a $1 trillion worth liquidity wave is about to be unleashed on the US economy!
He is not talking about Powell or the Fed. He is talking about Treasury Secretary Yellen unleashing a large sum of stimulus further boosting the US economy right before elections! How? By almost emptying a $1 trillion+ Treasury General Account!
8 Apr 2024
It's the liquidity, stupid! Yellen's stealth QE overpowering Powell's QT.
This probably helps risk assets performing well despite high interest rates and qt (Chart via SRP thru HolgerZ)
