The Treasury Department and the Fed have drained $150 billion in market liquidity since the debt ceiling deal
Market liquidity has fallen by $150 billion since Congress suspended the debt ceiling earlier this month, according to institutional brokerage and advisory firm Strategas.
But the money to buy those T-bills comes out of financial markets, and Strategas said the Fed's reverse repurchase program — which acts like short-term loans — isn't offsetting the loss of liquidity from the auctions. He said that a major liquidity drain could reverse the outperformance of long-duration stocks, such as technology and communication companies, while those focused on building things could see improved performance.Draining liquidity from the system could also lead to more bank failures, he warned, adding that he expects that risk will eventually pressure the Fed to slow down its quantitative tightening.
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Texas A&M Fort Worth breaks ground with $150 million dollar Law & Education buildingTexas A&M Fort Worth began construction on its first building on Wednesday.
Leer más »
Treasury yields rise as investors await comments from Fed Chair PowellU.S. Treasury yields climbed on Wednesday as investors looked ahead to Fed Chairman Jerome Powell’s testimony before Congress and assessed the economic outlook.
Leer más »
US Treasury Secretary Yellen: As Fed tightens policy, recession remains a riskUS Treasury Secretary Yellen: As Fed tightens policy, recession remains a risk – by anilpanchal7 Fed RiskAversion Recession UnitedStates NewsTrading
Leer más »
Amazon price target lifted to $150 per share as AI will drive the next leg higher, says JefferiesJefferies lifted its price target on Amazon.com Inc. shares to $150 from $135 on Wednesday. “We believe upside to consensus combined with positive sentiment...
Leer más »
Notes from your Neighbors - PoPvilleThanks to Lisa for sending from 'Missouri Ave NW at the intersection with Georgia Ave: NEW RED LIGHT CAMERA $150'
Leer más »