Source item

My theory on why Fed rate cuts aren't going to plan. Since JAYPOW annc Sept rate cut at J-Hole, $BTC down 10%, y? I thot rate cuts were good for risk assets. RRP pays 5.3% no T-bill under 1-yr maturity pays more. MMF will move money from T-bill -> RRP which is $ liq -ve. Since J-Hole, RRP up $120bn. IMO this will continue as long as T-bill rates < RRP. I will discuss this and a few other thots on Fed rate cut ramifications at my KBW keynote tomorrow.