CMB Macro: The Fed may slow down or even halt the balance sheet reduction ahead of schedule

Jinshi data, February 27th, China Merchants Macro Research believes that considering the SOFR interest rate quarter-end surge, the debt ceiling issue may cause TGAaccount to surge after declining, increase in reserve and repo market Liquidity supply and demand Fluctuation and other risk signals, the Fed may slow down or even stop shrinking its balance sheet in advance to deal with financial market Liquidity pressure. On the other hand, if the Fed increases the policy weight of inflation risk, the US financial market will once again experience Liquidity shocks, then the pro-cyclical nature of US stock capital flow will amplify market Fluctuation, further catalyzing the downward trend of the US dollar index.

View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Share
Comment
0/400
No comments
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate app
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)