Forward Guidance artwork

The Fate Of The Fed's Balance Sheet | Lou Crandall & Joseph Wang on Draining of Reverse Repo (RRP) Facility, Timeline of QT Taper, and 2024 Tax Refund Data

Forward Guidance

English - March 08, 2024 16:01 - 52 minutes - ★★★★★ - 199 ratings
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Previous Episode: The Erosion of Institutional Accountability | Dr. Luigi Zingales on Bank Failures, Whistleblowing, and The Fed
Next Episode: Liz Ann Sonders: There's No Such Thing As A Typical Interest Rate Cutting Cycle

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Follow Joseph Wang on Twitter https://twitter.com/FedGuy12
Follow Lou Crandall on Twitter https://twitter.com/Fedwatcher
Joseph's piece on Real Rates: https://fedguy.com/higher-real-rates-for-longer/
More about Wrightson ICAP: https://www.wrightson.com/
Follow VanEck on Twitter https://twitter.com/vaneck_us
Follow Jack Farley on Twitter https://twitter.com/JackFarley96
Follow Forward Guidance on Twitter https://twitter.com/ForwardGuidance
Follow Blockworks on Twitter https://twitter.com/Blockworks_
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Use code FG10 to get 10% off Blockworks’ Digital Asset Summit in March: https://blockworks.co/event/digital-asset-summit-2024-london
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Timestamps:
(00:00) Introduction
(00:40) Reverse Repo Decline Driven By A) Decline In Fed's Balance Sheet And B) Increased Supply Of Treasury Bills And C) Private Repo Market Demand
(05:45) The Liquidity Demands Of The Basis Trade (Long Cash Treasurys / Short Treasury Futures) Is Drawing Money Out Of Fed's Reverse Repo (RRP) Facility
(12:40) VanEck Ad
(13:22) Lou's Accurate Prediction On Why Fed's Bank Term Funding Program (BTFP) Would Not Be Renewed (It Wasn't)
(17:10) Fed's Balance Sheet Policy: Quantitative Tightening (QT)
(25:30) Summary From Jack
(27:01) Money Market Data Could Indicate QT Will Continue For Longer
(28:28) DAS Ad
(33:14) Interest Rate Outlook On Fed Cutting Cycle
(37:17) Inflation And Real Interest Rates
(43:43) Potential Government Shutdown In U.S.??
(46:33) Tax Season Approaches! The Plumbing Of Refunds
(49:31) Joseph's Closing Thoughts On U.S. Fiscal Situation
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Disclaimer: Nothing discussed on Forward Guidance should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.

Finally, you can easily access Bitcoin in a low-cost ETF with the VanEck Bitcoin Trust (HODL). Visit https://vaneck.com/HODLFG to learn more.

VanEck Bitcoin Trust (HODL) Prospectus: https://vaneck.com/hodlprospectus/

__

Follow Joseph Wang on Twitter https://twitter.com/FedGuy12

Follow Lou Crandall on Twitter https://twitter.com/Fedwatcher

Joseph's piece on Real Rates: https://fedguy.com/higher-real-rates-for-longer/

More about Wrightson ICAP: https://www.wrightson.com/

Follow VanEck on Twitter https://twitter.com/vaneck_us

Follow Jack Farley on Twitter https://twitter.com/JackFarley96

Follow Forward Guidance on Twitter https://twitter.com/ForwardGuidance

Follow Blockworks on Twitter https://twitter.com/Blockworks_

__

Use code FG10 to get 10% off Blockworks’ Digital Asset Summit in March: https://blockworks.co/event/digital-asset-summit-2024-london

__

Timestamps:

(00:00) Introduction

(00:40) Reverse Repo Decline Driven By A) Decline In Fed's Balance Sheet And B) Increased Supply Of Treasury Bills And C) Private Repo Market Demand

(05:45) The Liquidity Demands Of The Basis Trade (Long Cash Treasurys / Short Treasury Futures) Is Drawing Money Out Of Fed's Reverse Repo (RRP) Facility

(12:40) VanEck Ad

(13:22) Lou's Accurate Prediction On Why Fed's Bank Term Funding Program (BTFP) Would Not Be Renewed (It Wasn't)

(17:10) Fed's Balance Sheet Policy: Quantitative Tightening (QT)

(25:30) Summary From Jack

(27:01) Money Market Data Could Indicate QT Will Continue For Longer

(28:28) DAS Ad

(33:14) Interest Rate Outlook On Fed Cutting Cycle

(37:17) Inflation And Real Interest Rates

(43:43) Potential Government Shutdown In U.S.??

(46:33) Tax Season Approaches! The Plumbing Of Refunds

(49:31) Joseph's Closing Thoughts On U.S. Fiscal Situation

__

Disclaimer: Nothing discussed on Forward Guidance should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.

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