Wednesday, January 24, 2018

The Fed is three color

US Financial Conditions Easiest Since 2000 (Despite 5 Fed Rate Hikes)

Less liquidity to Treasury and an equal increase in liquidity to member deposits. Net flow is that same, no currency risk.  

So, we are awaiting Congress, and if Congress continues to budget on a week by week basis, then Congress is doing better, financially. Congress is imposing slightly less constraint on the economy.

Test the theory  with sequester.

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