The Sequence

Published on April 1, 2024 by Premium

The decline in RRP balances looks to slow in the coming months, which suggests the upward pressure in money market rates necessary to end QT will not appear until early 2025. Chair Powell strongly hinted at an imminent QT taper, but noted that QT would continue until signs of reserve scarcity emerge. Fed officials widely look to upward pressure in overnight rates as a key indicator for scarcity. The sequence from 2018 was first an […]

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