Cloud Y

🔔🔔🔔 Here is my long-form article on question of why Standing Repo Facility may potentially be one of the most important tools for the Federal Reserve in the post-QT era, featuring @DavidBeckworth @dandolfa's excellent insights ‼️‼️ 👉 econreporter.substack.com/p/standing-rep…

Trying to Soften Up the Federal Reserve conversableeconomist.com/2025/07/22/try…

Everyone on Twitter was so excited by the idea. But Andolfatto told me, it was absolutely not the case inside the Fed

Here is my latest on the Fed's Standing Repo Facility, featuring 1️⃣ some fun anecdotes about its origins from David Andolfatto ✌️ discussion about its current state 3️⃣its potential as the star of the Fed's interest rate regime 4️⃣and why it can't... econreporter.substack.com/p/standing-rep…

This is a topic which I have a very strange feeling about... like... I got to be wrong... right?? right?? **Trump appointees will get Fed board majority when Powell is gone – and it matters** en.econreporter.com/57367/trump-ap…

Hong Kong soaks up HKD 30 billion from interbank market to defend currency peg en.econreporter.com/57359/hong-kon…

Exchange Fund Bills rollover.. This is a graph I encourage every HKD commentator to look at before they write. Aggregate Balance is the gauge of interbank liquidity in HK. And what this graph shows is simple: there are two ways to drain liquidity from Aggregate Balance

#2 is reverse logic to me. A currency peg is not in danger because it has to intervene often. It's only in danger when it runs out of USD , but HKD is backed by a lot of USD, not remotely close to any worry of running out. & this episode we are talking "too much liquidity"

1) it is assumed HKMA deliberately lower interest rate with (not enough) "foreign exchange interventions" & 2) More foreign exchange intervention is detrimental to the currency peg

This piece, actually a redo of my previous posts on the same topic, is kind of a reply to narratives like this

Here is me explaining why the low-interest rate environment in Hong Kong is actually a policy choice (with an asterisk) by the HKMA ‘Unusually low’ Hong Kong interest rate is a policy choice* | en.econreporter.com/57354/unusuall…