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The Debt Ceiling Approaches | Joseph Wang & Dominique Dwor-Frecaut
Forward Guidance
The Fed Is Withdrawing Operational Risk From the Market Rather Than Helping to Fund a Huge Deficit
The issue is really to make sure that there is no failed treasury auction. So I think we can expect the Fed, you know, to come in with all kinds of assurances after the treasury has announced payment prioritization. The sequencing is important to make clear that the Fed is withdrawing operational risk from the market rather than helping to fund a huge deficit with its printing prices. Right. You're absolutely right. So I'm going to get net terms.
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