The market appears to be on a precipice right now as it debates which direction to take, with significant bullish and bearish narratives on the horizon.
"The weaker than expected GDP print points to a more sluggish economy while the higher Core PCE warns of an inflation problem that continues to be a thorn in the Fed's side," QCP wrote.in the first quarter of this year following the preceding quarter's 3.4% growth. Meanwhile, the personal consumption expenditures price index, the Fed's preferred inflation metric, showed prices rose to a 3.4% annualized rate in the first three months of the year from 1.
QCP also wrote that Janet Yellen's fiscal strategy, leveraging the Treasury General Account —holding close to USD 1 trillion in assets—and the Reverse Repurchase Program with USD 400 billion, could inject up to $1.4 trillion in liquidity into the financial system pushing up all risk assets., the key to a continuing bitcoin bull market is the U.S. Treasury's impending quarterly refunding announcement, which maintains or reduces the current TGA balance of $750 billion.