The Fed Will Have To Print Bigger This Time

In this episode, Nik lays out three money market metrics he watches as a former repo and treasury bill trader, and why they suggest the Fed may be closer to another round of QE than anyone wants to admit. He starts with SOFR creeping back above IORB, a spread now at its widest since tax day, and the month end and year end dates he is watching next. He then covers why more than $7 trillion in T-bills has to be funded by a cash market that cannot grow to meet it, and why bank reserves at 9% of GDP sit near the levels that preceded the 2019 repo crisis. The Bitcoin Layer and its guests do not provide investment advice.