, Columnist
The Fed Still Has a Lot of Quantitative Tightening to Do
The upward pressure on long-term interest rates from QT will persist until late 2025.
There goes the liquidity.
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The US Federal Reserve’s efforts to quell inflation have sent long-term interest rates to their highest level in a generation, putting a lot of stress on banks, companies and anyone looking to finance a new home.
How long will this go on? Judging from the sheer volume of long-term debt securities that the Fed still needs to unload, I’d say at least a couple more years.