The Federal Reserve is not truly waiting for China to create a disaster for it, but rather for China to provide it with a narrative.
As long as external reductions, auction pressures, and term premium increases occur simultaneously, the Fed can expand its balance sheet again under the guise of "maintaining market function" and "supplementing reserve funds."
At that time, what it appears to buy is liquidity, but in reality, it is supporting the financing ceiling of the U.S. Treasury.
Ultimately, whether or not to cut interest rates is just a front; the real backstage drama is who will sta
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