The liquidity factor will be roughly neutral during 1H22, as $60 billion per month of Treasury balance sheet contraction is likely to be offset by a draining of the Treasury General Account at the Fed due to issuance being constrained by the GOP’s use of the debt ceiling as a bargaining chip to slow spending growth.
The liquidity factor will be roughly neutral during 1H22, as $60 billion per month of Treasury balance sheet contraction is likely to be offset by a draining of the Treasury General Account at the Fed due to issuance being constrained by the GOP’s use of the debt ceiling as a bargaining chip to slow spending growth.
Barry, do you mean to say “1H23” instead of “1H22”? See 👆