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MNI PODCAST: FedSpeak-Dwor-Frecaut: QT To End As Early As Sept

  • The U.S. Treasury's moves to shore up its cash balances after the debt ceiling fight could force an early stop to Fed QT possibly in the third quarter, says former New York Fed economist Dominique Dwor-Frecaut.
  • If the Treasury sticks to its plan of rebuilding its general account to USD600 billion by September, bank reserves could fall sharply because usage of the overnight reverse repo facility is unlikely to decline significantly, says Dwor-Frecaut, now strategist at Macro Hive.
  • Strong U.S. economy and high inflation will eventually call for peak rates in the 7% to 8% range.
Listen to the full podcast here.
MNI Washington Bureau | +1 202-371-2121 | jean.yung@marketnews.com
MNI Washington Bureau | +1 202-371-2121 | jean.yung@marketnews.com

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