AE Liquidity Oscillator Signals Weakness, but Potential Relief Ahead

The AE Liquidity Oscillator has shown its third red signal in a row, with the fourth coming as well.
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Q4 2024 wasn't so great for global liquidity, so it's not as surprising.

Drop that occurred in Fed liquidity has almost reversed completely, and it was mainly because financial institutions have put more money into the Reverse Repo (RRP).
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They did this at the end of the year to clean up their balance sheets and meet regulations, as they usually do.

On the bright side, debt ceiling talks haven't been settled yet.
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This could lead to the government starting to use the Treasury General Account (TGA) funds, which currently stand at $721 billion.

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