The Fed After Jackson Hole….Policy error building

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The Markets After Jackson Hole: Don't Fight The Fed…Give In Now!

 

Post-Jackson Hole, the Fed has its head-down and is determined to battle inflation. US policy is front-ended loaded and policy-makers even warn of recessionary pain ahead. However, the quantitative liquidity dimension is being ignored. Fed B/S reduction or QT is asymmetric and non-linear in its effects. It will cause funding markets to buckle, and may trigger problems in international currency markets, read Euro. This could force a liquidity pivot in 2023. Until then it is risk-off.

 

 

 

See our latest published research, Global View: The Markets After Jackson Hole: Don't Fight The Fed…Give In Now! - August 2022

 

 

IMPORTANT – Our email addresses are changing – emails from sender@liquidity.com will become sender@crossbordercapital.com from the 1st of July 2022. After this date emails to ANY email account ending in liquidity.com will NOT work. Please update your records before the 1st of July 2022. You may also receive a direct communication from your contact to this effect. Please feel free to contact us on info@crossbordercapital.com at any time about this change.

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