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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 Dilemma

The Fed wants to shrink its balance sheet and keep banking sector reserves above a minimum level. That requires QT to drain the RRP, which really doesn't appear to be happening. Instead, it seems that QT has drained and continues to drain liquidity from the banking sector. The potential problem could come with how that sort of works in practice.

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