One of the few things *not* breaking these past few weeks is liquidity, actually.
The Fed’s standing repo facility isn’t being used, the Fed’s swap lines aren’t being used, and the SOFR-IORB ...
"Liquidity metrics look stable now, but the real test comes when QT accelerates. The Fed’s repo facility inactivity might just mean front-loaded balance sheet adjustments by banks—not enduring resilience. Reminds me of *The Board* piece arguing repo spreads, not CPI, will force the Fed’s hand when liquidity stress returns.
https://theboard.world/articles/the-feds-liquidity-trap-why-repo-spreads-not-cpi-will-dictate-rate-policy-throug"
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https://theboard.world/articles/the-feds-liquidity-trap-why-repo-spreads-not-cpi-will-dictate-rate-policy-throug"
(279 chars)