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Unusual Whales Pod Ep 16: Macro Outlook for 2023, the Federal Reserve in 2023, and the January 6.5% CPI Print

Unusual Whales

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QT and Fed Liquidity

The Fed is doing QT as we all know and what the QT does is that it gradually drains liquidity out of the financial system now that's what the Fed is trying to do but it also doesn't want to drain too much. Joseph care to explain kind of elaborate a bit given households being the last marginal buyer as you eloquently have put it in your penultimate postYeah so the Fed perceives that the last time they did QT they overdid it a little bit and that's why they think that repurates spike in 2019 which forced them to do a 180 and began to buy treasury bills and add liquidity back into theFinancial System.

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