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Unusual Whales Pod Ep 17: First FOMC of 2023, Powell and disinflation, and the January 25 bps rate hike with experts

Unusual Whales

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The Fed's QT Framework

Recently, Governor Waller mentioned two modifications to the Fed's QT framework. He said he is open to maintaining QT, even if policy rates are cut. The problem occurs when the Fed is draining liquidity, it doesn't actually have control control of where the liquidity comes out of. That suggests to me that rates will go higher and it would logically be a headwind for a lot of risky assets as well. But we'll see if Chair Powell has any more commentary on this at his press conference.

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