With Fed QT (Quantitative Tightening) running at a pace of $95 billion a month and the Treasury forecasting its cash balance to rise by $200 billion into year end, that amounts to a squeezing of liquidity that alone implies an 8% drop for the S&P 500 by the end of December, according to their model.
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Fed Holds Rates Steady as Oil Shock Complicates Path to Cuts
The Federal Reserve is widely expected to hold interest rates steady for a second straight time, as policymakers confront a mix of persistent inflation, volatile oil prices, and an increasingly uncertain economic outlook.
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