SUMMER POLICY INTERVENTION LEVERS & MACRO EVENT RISKS
LIQUIDITY IS COMING!! LIQUIDITY IS COMING!!
WHAT FEEDS THIS MARKET is more than a recording of my market mantras, it is also a place to remind that LIQUIDITY drives market returns, and Treasury Bessent was out bright and early this morning to remind us that more liquidity is likely coming.
"We can both grow the economy and control the debt. What is important is that the economy grows faster than the debt.
If we change the growth trajectory of the country, of the economy, then we will stabilize our finances and grow our way out of this."
I know. I know. He wants US to think he is talking about the positive impact on the business cycle from the passing of Trump's bill for tax cuts & increased fiscal spending, while promising big increases in trade tariff revenue and business benefits from deregulation.
I hear: LIQUIDITY IS COMING!! LIQUIDITY IS COMING!!
With that, I will look for the POLICY INTERVENTION tools he can deploy to make it rain money. Here are a few top of my list: