Remember that repo market chaos back in September 2019? Rates literally exploded to 10% overnight because the system ran dry on reserves. Powell had no choice but to pump in emergency liquidity fast.
What's wild is he admitted afterward they got completely blindsided by how quantitative tightening was draining the system. The Fed basically said "yeah, we didn't see that coming" and promised they'd keep a closer eye on reserve levels going forward.
Now here we are again talking about easing repo constraints as liquidity pressures build. Some patterns just keep repeating.
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
14 Likes
Reward
14
6
Repost
Share
Comment
0/400
OnchainDetective
· 2h ago
The 2019 repo market blow-up was entirely a trap set by the Federal Reserve itself, and they still insisted on acting like they didn't see it coming. On-chain data had already provided signals long ago.
View OriginalReply0
LiquidationWatcher
· 12-11 09:34
The 2019 repo collapse caught Powell off guard, and now it's happening again? Systemic risks have never really subsided.
View OriginalReply0
Deconstructionist
· 12-10 23:53
The repo crash in 2019 was really outrageous. Powell admitted afterwards that he didn't see the balance sheet reduction being so aggressive, and now they're going to loosen again? History tends to repeat itself.
View OriginalReply0
AirdropHunterKing
· 12-10 23:52
Damn, I lost everything during that wave in 2019. The liquidity dried up and it's just as disgusting as it is now.
View OriginalReply0
GasFeeLady
· 12-10 23:51
yo this is literally the fed watching gas prices spike to 100 gwei and pretending they didn't see it coming lmao. same move, different chain
Reply0
SelfStaking
· 12-10 23:44
That drama from 2019 really cracked me up. The Fed said they didn't see quantitative tightening draining the system, and now they're just repeating the same playbook...
Remember that repo market chaos back in September 2019? Rates literally exploded to 10% overnight because the system ran dry on reserves. Powell had no choice but to pump in emergency liquidity fast.
What's wild is he admitted afterward they got completely blindsided by how quantitative tightening was draining the system. The Fed basically said "yeah, we didn't see that coming" and promised they'd keep a closer eye on reserve levels going forward.
Now here we are again talking about easing repo constraints as liquidity pressures build. Some patterns just keep repeating.