So now the US Gov has reopened, what's next?Expect a few days for TGA spending to begin to significantly add to liquidity and should persist for several months.Obviously, QT ends in Dec and the balancesheet will crawl higher.We should see the dollar begin to weaken again.The next key step is to avoid a Year End funding squeeze. Expect several "temporary" measures to add liquidity. Term Funding and SRF operations are most likely.That will eventually morph into the desperately needed changes to the SLR to all ...

Federal Reserve Chairman Jerome Powell on Tuesday said that the central bank could soon reach a point where its long-running program to reduce the balance sheet size would need to end. Yet, BTC continues to trade in the red with derivatives pointing to persistent bearish sentiment. “Our long-stated plan is to stop balance sheet runoff when reserves are somewhat above the level we judge consistent with ample reserve conditions,” Powell said in prepared remarks for his speech at the National Association for ...