Over the past 18 months, liquidity from Treasury General Account (TGA) and Reverse Repo (RRP) has been more than offsetting the Fed’s QT.

Liquidity from TGA and RRP has exceeded the Fed’s balance sheet reduction by $417 billion.

While the Fed has been reduce liquidity, the US… pic.twitter.com/aZSfUNCJda

— The Kobeissi Letter (@KobeissiLetter) April 16, 2024