Daily Brief Macro: Fed Policy Taking Dovish Tilt in 2026 as Liquidity Management Programme Aims to Lower Repo Stress and more

In today’s briefing:

Fed Policy Taking Dovish Tilt in 2026 as Liquidity Management Programme Aims to Lower Repo Stress
Who Really Gains from America’s LNG Export Boom?
CX Daily: China Bad-Debt Managers’ Bet on Bank Stocks Could Backfire

Fed Policy Taking Dovish Tilt in 2026 as Liquidity Management Programme Aims to Lower Repo Stress

The Fed lowered its policy rate by 25 basis points and announced a liquidity management programme to add cash to the banking system during a period of seasonal stress.
New forward guidance suggests only two more rate reductions over the next two years, but Chairman Powell seemed more dovish about the outlook for policy in his press conference.
Fed policy settings have become less restrictive and have almost returned to neutrality, based on r*. Real-Time data from commodity and equity markets suggest monetary conditions have eased since April.

Winter demand and Europe’s shift from Russian gas have pushed U.S. LNG exports to record highs, tightening domestic balances and reshaping global pricing dynamics.
Upstream natural gas producers gain little from export strength because long-term contracts, hedging practices, and heavy reinvestment cycles limit their exposure to rising spot prices and short-term market volatility.
Midstream companies benefit most as fee-based pipeline revenues scale with higher LNG feed-gas flows.

In Depth: China Bad-Debt Managers’ Bet on Bank Stocks Could Backfire
A new player has emerged in the boardrooms of China’s major banks: the “Big Four” state-owned asset management companies (AMCs) created to clean up the bad debts of four state-owned commercial lenders.
The balance sheets of the “Big Four” are now glowing with profits — thanks not to their core task, but to a surge in bank stocks.

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