The Debt Ceiling Drama is Approaching
The Macro Trading Floor
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The Fed's Debt Ceiling and the US Dollar
We're in within four weeks of the ultimate showdown on the debt ceiling, causing a lot of negative headlines for the US dollar. Once the debt ceiling is signed, we know that the US treasury will swiftly bring the treasury general account back to what $600 billion. The FDIC now removes liquidity as well, while repaying emergency loans on behalf of banks under receivership. So we have a trio of agents or authorities all removing liquidity at the same time from three weeks from now and on. To me, that's a positive dollar story, because you remove an obstacle, which is the debt ceiling,. You get followed liquidity withdrawals from all major agents at the sameTime.
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