LIQUIDITY REVISITED

The 'tourist checks back in on "total liquidity" and does a little correlation analysis

Way back in August 2022, I wrote a piece titled QE ≠ STOCKS UP AND QT ≠ STOCKS DOWN. I discussed how the old notion of focusing solely on the Federal Reserve’s balance sheet was no longer sufficient as the overnight reverse repo program (ON RRP) and changes in the Treasury’s General Account (TGA) were often overwhelming any QE or QT from the Fed. At the…