macroeconomics

Carrying the identity built in Part 1 — ΔReserves = ΔSOMA + ΔLending facilities − ΔTreasury TGA − ΔRRP — this part traces where liquidity moved from March 2022, when the Fed began hiking, through 2024, across five regimes. 1. March–May 2022 (Equities → RRP) The Fed's 2022 hikes pushed liquidity out of equity

— "Earnings don't move the overall market; it's the Federal Reserve Board… focus on the central banks and focus on the movement of liquidity… most people in the market are looking for earnings and conventional measures. It's liquidity that moves markets." (Stanley Druckenmiller)