In Summary
In this month’s report, Life Imitating Art, Rockefeller Global Family Office Chief Investment Officer Jimmy Chang expounded on why he thinks Washington’s fiscal policy has evolved to be too pro-cyclical, and the burden that approach has placed on the Treasury Department to finance the country’s rapidly growing debt.
Chang also explained how the Treasury Department’s over-reliance on short-term funding in 2023 released excess liquidity into the market and has more than offset the impact of quantitative tightening (QT). He believes that the Fed will be looking for pretexts to stop QT and restart quantitative easing in the not-too-distant future to help absorb the Treasury’s growing bond issuance.
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