0 sats \ 0 replies \ @halalmoney 5 Jan
Drainage of the Fed's reverse repo facility pushes liquidity back into the financial system.
Equity prices affect economic performance. Changes in liquidity impact equity prices. Ergo, liquidity leads the economy.
US tax receipts tend to be highly correlated with stock performance.
Fiscal policy > monetary policy. This fiscal dominance is likely to continue due to ongoing government budget deficits aka structural deficits.
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