Real Vision founder: Federal Reserve may adjust policy to address liquidity crisis
RealVision co-founder and CEO Raoul Pal indicated that the Federal Reserve may be forced to take measures this week to prevent a funding crisis at the end of the month and year. He believes the current crypto market is like a run on leveraged finance instruments, with prices full of discount factors. The US stock market is temporarily supported by buybacks and year-end ranking battles, but if the problems are not resolved in time, the situation of 2018/19 may repeat.
Raoul Pal pointed out that the Treasury hopes to control liquidity by encouraging banks to increase lending rather than relying on the Federal Reserve's quantitative easing policy, aiming to stimulate ordinary people while increasing collateral value. He believes liquidity management has become a political game and concluded that US policymakers will "fix the pipes before opening the floodgates; asset inflation is only delayed, not absent."
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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