In accordance with Odaily, Delphi Digital noted that the Federal Reserve's interest rate path for 2025 is the clearest in recent years, with a projected 25 basis point rate cut by December, bringing the federal funds rate to 3.5%-3.75%. The research highlighted three structural liquidity improvements: quantitative tightening (QT) ended on December 1, the Treasury General Account (TGA) is being gradually reduced, and overnight reverse repurchase (RRP) has been exhausted, marking the first time since early 2022 that the market has returned to a positive net liquidity environment. Delphi Digital added that the Secured Overnight Financing Rate (SOFR) and federal funds rate have fallen to the upper 3% range, with real interest rates declining from their 2023-2024 highs, indicating a 'controlled slowdown' rather than a rapid easing. The firm expects 2026 to be a year where policy shifts from resistance to a mild tailwind, benefiting long-duration assets, large-cap stocks, gold, and digital assets with structural demand.
Delphi Digital: Market Returns to Positive Net Liquidity for First Time Since Early 2022
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