In today’s briefing:
- Is There A ‘Stealth’ QE At The Fed?!
- Fed Watch: 7 Charts on How Assets Perform when the Fed Pauses
Is There A ‘Stealth’ QE At The Fed?!
- Global Liquidity is a crucial driver of investment markets, and US Fed liquidity refuses to slow down despite fears that policy interest rates will stay high
- The key turning-point was last year’s British gilt crisis. This was reinforced by the SVB and CSFB banking problem and prompted US banks’ reserves to start rising
- This US ‘Stealth’ QE will be underscored by greater Treasury bill issuance, which historically has led the Global Liquidity by six months
Fed Watch: 7 Charts on How Assets Perform when the Fed Pauses
- Markets are currently pricing a 97.6% probability of a pause (or rather a skip) from the Fed today.
- Basically everything performs in the immediate aftermath of a pause
- The USD does not weaken on average as everyone and their mother anticipates
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
