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Before the approval of the debt ceiling deal, the tresuary had to drawdown its cash balance to almost zero, according to analyst this move ofset the QT by the FED, and its one of the reasons the stock market had a rally in the first half of 2023. | Before the approval of the debt ceiling deal, the tresuary had to drawdown its cash balance to almost zero, according to analyst this move ofset the QT by the FED, and its one of the reasons the stock market had a rally in the first half of 2023. | ||
After the debt ceiling deal is signed, analyst has now expressed worry about the liquidity drain | After the debt ceiling deal is signed, analyst has now expressed worry about the liquidity drain that rebuilding the TGA will mean , combined with the normal QT the FED is doing. It will be like a double negative for liquidty, while before the event it was like a null effect between the two. | ||
Different Scenarios it could play out? | Different Scenarios it could play out? | ||
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== References == | == References == |