Real Vision’s founder suggests that the Federal Reserve might have to revise its fiscal policy to avert a potential liquidity crisis. He argues that liquidity management has become increasingly politicized. This shift could complicate the Fed’s ability to respond effectively to financial pressures. The founder emphasizes the importance of maintaining a stable liquidity environment to support economic growth. He warns that if political considerations dominate decision-making, it may hinder the Fed’s capacity to act decisively in times of need.
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