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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Inflation Slowed in January as Consumer Prices Rose 2.4% to Start 2026
U.S. inflation cooled more than expected in January, offering a more positive start to the year for policymakers and investors watching the trajectory of interest rates.
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