Tag: FEDERALRESERVE
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How Fed Dollar Swap Lines Safeguard Eurozone Liquidity in Crises
The Fed has lending facilities in place to provide dollar liquidity for Eurozone banks if required. Although Federal Reserve chairman Jerome Powell reaffirmed Fed’s commitment to maintain dollar swap lines for European banks as recently as April, ECB officials are concerned that this could change in the future. According to the latest figures, as much…
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Using U.S. Treasury Bonds as a Weapon: Why China and the EU Are Unlikely to Pull the Trigger
The ongoing tensions over trade policies and tariffs have raised questions about whether major U.S. bondholders like China and the European Union (EU) might retaliate by selling their U.S. Treasury holdings. At first glance, this might seem like a powerful economic weapon. But a closer look reveals why this move is less threatening than it…
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U.S. Reciprocal Tariffs Are Strategic, Not Chaotic: A Bullish Opportunity
The recent U.S. announcement of reciprocal tariffs has stirred global headlines, prompting concerns of a trade war revival. But look closer, and it’s evident this isn’t about chaos—it’s calculated. The markets, bond yields, and macro data all point in one direction: this is a tactical move designed to pressure the Federal Reserve to cut rates,…