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The Debt Ceiling Approaches | Joseph Wang & Dominique Dwor-Frecaut
Forward Guidance
The Debt Ceiling Resolution and the Liquidity Drain
There's some chatter to the market about a potential huge liquidity drain when one day the debt ceiling resolution gets passed. The federal government doesn't like to have a checking account that's at zero. That's going to be a tailwind for risk as it happens. It may not be severe, but it's something to keep in mind.
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