QT on track, bank liquidity measures unwind.
Either mid-June or possibly in July.
After years of money printing and pandemic stimulus, it’s hard to wring all this liquidity out of the financial system?
Turned upside-down since late 2008 with QE and interest rate repression, it still hasn’t been turned right-side up.
Massive gyrations on the balance sheet after FDIC’s take-down of First Republic, sale of its assets to JP Morgan, and FDIC’s loan to JPM.
“We’re going to be looking at those factors to determine whether there is more to do.”
The rate is now where it last was during the 14-month-long pause from June 2006 to August 2007.
First Republic, is this you?
Just a slower-growth muddle-through economy that adjusts to higher rates and sticky inflation.
The economy would muddle through, but in the markets, all heck would break loose. Here’s why.