Real Vision founder: The Federal Reserve may be forced to adjust fiscal policy to prevent a liquidity crisis, and liquidity management has become a political game.

ChainCatcher news, Real Vision co-founder and CEO Raoul Pal posted that the Federal Reserve is very likely to be forced to "fix the pipes" this week to prevent a liquidity crisis at the end of the month or year. Crypto now resembles a squeezed financing tool, with prices reflecting the discounts caused by burst pipes; U.S. stocks are temporarily supported by buybacks and year-end ranking battles, but if the problem is not resolved immediately, the script of 2018/19 could repeat at any time. The deeper battlefield is at the Treasury: the Treasury now hopes to control liquidity through banks (increasing lending benefits ordinary people), rather than relying on the Federal Reserve's quantitative easing policy. This allows fiscal policy and monetary policy to remain aligned under the key goal of stimulating ordinary people, while also enabling Wall Street to benefit from currency depreciation, thereby increasing collateral value. The benefits of quantitative easing do not trickle down to ordinary people. Liquidity management has now become a political game, rather than a monetary policy game.

Raoul Pal concluded that U.S. policymakers will first fix the pipes, then open the floodgates; asset inflation is only delayed, not absent.