Fed Is in Risk Management Mode: Saxo's Wong

The video discusses the Federal Reserve's nearing end of its tightening cycle and its risk management strategy since November. It highlights the Fed's focus on balancing inflation control with economic slowdown risks and financial stability. Concerns about Treasury cash management and potential liquidity crunch are addressed, noting that the banking system remains stable. The impact of T-bills and reverse repo on liquidity is explained, concluding with the effect on risk assets and market stability.

What has been the impact of the Treasury's cash balances on the banking system?

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What does the speaker suggest about the liquidity situation in the banking system?

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