Phyrex|Dec 02, 2025 16:23
To put it simply, the current rise is just the market's rebound in response to the end of quantitative tightening. The Fed has also added some liquidity. Next, for a reversal, we’re waiting for the cancellation of SLR. Previously, I mentioned two prerequisites for a reversal: one is stopping quantitative tightening, and the other is canceling SLR.
SLR (Supplementary Leverage Ratio) is essentially a hard cap on 'how much a bank can expand its balance sheet.'
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