The Fed's Going to Tighten Until Something Breaks

In a conversation about the potential consequences of the Federal Reserve tightening, the speaker notes that historically short-term funding markets have broken, like in 2019 when the repo rate skyrocketed. They also suggest that long-term issues of refinancing and long-end yields could break, citing examples like the Bank of England and Bank of Japan. In conclusion, there is a possibility of something breaking both in the short term and long term due to the impact of certain factors.

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