We've correctly predicted the end of a good US period by March 2020. So what's next? - Part 2

We highlighted 3 things recently below.

http://sg-stock.blogspot.com/2020/03/weve-correctly-predicted-end-of-good-us.html

1. Fed is short of USD.

2. US treasury dept is flushed with cash.

3. Massive credit rating downgrades are coming.

The New York FED is a major shareholder of the US FED and is also one of its 12 subsidiaries.  The New York FED has just expanded its repo market funding to US$150B because the US FED is short of USD.

https://finance.yahoo.com/news/barclays-fed-taps-repo-operations-to-boost-liquidity-162615044.html

The risk-free rate (10-year yield) is around 0.5% now which is only half of the on rrp rate but there is no panic in the repo market yet because the repo rate is still within 1% to 1.25% as set by the US FED.

The New York FED is trying to prevent the US FED from doing another inter-meeting rate cut due to the stock market crashes which trigger the circuit breakers.  If the 10-year yield continues to fall closer to Zero, the US FED will have to do another rate cut in its upcoming March meeting.