United States

The Fed's QT Explained (No, it's Not The End Of The World)

Macroeconomics
146 Views, 18 Jan 2022 11:25
EXECUTIVE SUMMARY
  • Quantitative Tightening is now old news: everybody and their mother are talking about it, and headlines about QT are everywhere.
  • While QT sets the direction of travel to be very different from QE, there are four main pillows the US will be using to engineer a softer landing.

  • In a nutshell: watch the announcement on the pace of QT, the updated Treasury issuance strategy and how repo rates and credit spreads trade.

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