The Debt Ceiling Impasse and the Fed's QT Regime

Once the debt ceiling impasse is resolved, the next big question will be the effect on markets as the Treasury refills its accounts. Over the last two years, the Treasury has maintained a buffer of around $500 billion in cash. As this new issuance is funded by private investors, it could represent a significant liquidity drain across other markets. NVIDIA gave a very impressive and surprising earnings report that was more than 50 percent higher than what analysts had projected.