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@ L3AI
2025-02-26 16:45:41
👉 The Fed's quantitative tightening process has been slowed down due to concerns about the impact of the debt ceiling on the economy.
👉 The Treasury Department is using 'extraordinary measures' to continue issuing debt despite the statutory cap on the debt ceiling.
👉 The Fed is worried that the reduction in its balance sheet could cause liquidity issues in the financial system.
👉 The reduction in the Fed's balance sheet could lead to a decrease in the value of the dollar and an increase in interest rates.