Delivering Global Macro Investment Insights

DeSaque Macro Research

DeSaque Macro Research Limited was formed by Said DeSaque in April 2012 with the view to delivering global macro investment insights aimed at providing new ideas to clients.

Said DeSaque has over 26 years of experience working as a professional economist in financial services. Prior to establishing DeSaque Macro Research, Said held positions as Senior Economist at Robert W Baird and William Blair. He began his career as a graduate at PaineWebber in 1986, where he eventually became Head of the London Economics Department.

Said takes a very keen interest in international relations, along with their implications for economic development. His research interests include the economic transformation of China and its implications for global capital markets, particularly in the United States. He is a member of Chatham House in London.

The US economy and capital markets have historically been Said’s main focus of attention. He frequently presents his views to institutional investors in diverse geographic locations. In recent years, Said has also been carefully monitoring economic developments in Asia, particularly China and Japan.

Fed Policy Outlook Heavily Influenced by QE Legacy Issues

Liquidity Supportive for Risky Assets in 2025 as US Treasury's Role Becomes More Important

Global Economist, DeSaque Macro Research

Said Desaque

Global Economist

Macroeconomics

<ul>
<li>Although the Fed reduced its policy rate by 25 basis points last week, as expected, Chairman Powell disappointed markets with a hawkish pivot about further declines in 2025.</li>
<li>The cessation of quantitative tightening , effective 1 December, was also announced due to the elimination of excess liquidity in the financial system and strains in repo funding markets.</li>
<li>The elevated demand for repo funding due to high Treasury debt issuance means the Fed has effectively lost control of its balance sheet due to profligate fiscal policy conduct.</li>
</ul>


Although the Fed reduced its policy rate by 25 basis points last week, as expected, Chairman Powell disappointed markets with a hawkish pivot about further declines in 2025.
The cessation of quantitative tightening , effective 1 December, was also announced due to the elimination of excess liquidity in the financial system and strains in repo funding markets.
The elevated demand for repo funding due to high Treasury debt issuance means the Fed has effectively lost control of its balance sheet due to profligate fiscal policy conduct.


End of Quantitative Tightening Partly Eclipsed by Hawkish Pivot by Fed Chairman Powell