Value, Momentum Breakout View: Debt Ceiling 'Extraordinary Measures' And Fed's QT Program

Jan. 23, 2023 6:52 PM ETS&P 500 Index (SP500)SPY, IVV, VOO, VTI, DIA, IWM, QQQ, DJI, SPX, NDX4 Comments

Summary

  • As the Fed continues with the most aggressive QT program in U.S. history, the U.S. Treasury begins "extraordinary measures" to manage a potential debt ceiling standoff.
  • How large are the Treasury's "Extraordinary Measures" and will they counteract the Fed's quantitative tightening?
  • When has the Treasury used "Extraordinary Measures" previously and what did that do to markets?
  • What does the road ahead look like for sectors and markets?
  • Looking for a helping hand in the market? Members of Value & Momentum Breakouts get exclusive ideas and guidance to navigate any climate. Learn More »

Newton"s pendulum - Leadership/individuality concepts

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Introduction

As far as the laws of mathematics refer to reality, they are not certain; and as far as they are certain, they do not refer to reality.” ~ Albert Einstein

Three weeks into the new year, I have

Statutory debt limit chart

crfb.org

Projected Debt Ceiling limit impact

Goldman Sachs Global Investment Research

Reserve Balance and Treasury General Account

Yardeni.com

Fed holdings and QE / QT timeline

Yardeni.com

VIX days from debt ceiling deadline

Goldman Sachs

Fed Balance sheet holdings QT

VMBreakouts.com

SPY chart

FinViz.com VMBreakouts.com



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