QuoteHere we go again. The overnight funding markets are showing signs of stress, and the scent of QE is in the air.
Per New York Fed President John Williams:
"Based on recent sustained repo market pressures and other growing signs of reserves moving from abundant to ample, I expect that it will not be long before we reach ample reserves. When that happens, it will then be time to begin the process of gradual purchases of assets."
The question everyone should be asking is: why have the capital markets become so reliant on the Fed's liquidity? The answer goes back to the 2008 financial crisis.
Link: https://realinvestmentadvice.com/resources/blog/qe-is-coming-the-2008-roots-of-fed-dominance/