The article features an interview with Andy Constan, the CEO of Damped Spring, discussing the future of the Federal Reserve's balance sheet composition and the implications for the economy and markets. The Fed aims to match the weighted average maturity (WAM) of its balance sheet to that of the Treasury's debt outstanding. The article also explores the impact of the debt ceiling on funding markets and the potential pause of quantitative tightening (QT) to avoid volatility. Additionally, the article discusses the issuance strategy of Treasury bills and the role of the fiscal deficit in determining the composition of Treasury debt.



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