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The Fed Reserves' QT Switch
The Fed stopped hiking rates in 2018, but it wasn't until the summer after September 2019 that they stopped quantitative tightening. This time around, if the Fed reserves stops tightening, which of the switches do you think will go off first? And is it different this time considering that the QT switch has not even gone on yet? Which switch first? I think that they would pull the plug on quantitative tightening immediately just to get liquidity flowing back into the market. So I think QT would be switched off very quickly.