Prediction record

25% outcomeeconomy

The Fed and US Treasury will inject a major new wave of fiat liquidity in summer 2024

A scored record for Arthur Hayes, made on .

BlogPrimary sourceeconomymarkets

Scored record

25% outcomeeconomy

Summer will usher in a renewed gusher of fiat liquidity due to the policies of the US Federal Reserve (Fed) and Treasury.

The Fed and US Treasury will inject a major new wave of fiat liquidity in summer 2024

Made on
2024-04-08
Outcome
25% outcome
Importance
4 / 5
Contribution
+1.12

Criterion

Resolution status
resolved
Resolved on
2024-09-30

US dollar liquidity (via Fed measures and/or Treasury TGA drawdown / net bill issuance) expands materially during summer (June–Sept) 2024.

Deadline passed; data is available and unambiguous on the facts, so status=resolved. The FACTS cut mostly AGAINST the claim: the dominant summer-2024 dynamic was TGA rebuild + reserve decline (~-$350B), i.e. draining, not a material expansion of USD liquidity. The genuinely liquidity-additive elements were the ON RRP drawdown (~-$200B, releasing money-fund cash into markets) and the slower QT pace — these are why the interpretation is nuanced. Both sides logged for the scoring stage; no outcome value assigned.

Sources

  • Heatwave

    Substack ·

    Source

Outcome evidence

  • Contrary to a 'major new wave of fiat liquidity,' system liquidity CONTRACTED over summer 2024. Per the NY Fed, from early July to mid-September 2024 the Treasury rebuilt the TGA to ~$800B via a rapid increase in net bill issuance, ON RRP fell from ~$200B to de minimis, and bank RESERVES FELL by ~$350B. Net reserve balances declined across the June–Sept window.

    Evidence

  • Partial offsetting factor (the pro-Hayes side): the Fed slowed QT effective June 1, 2024 (Treasury runoff cap cut $60B→$25B/month), reducing the pace of balance-sheet drain during the summer.

    Evidence

Corrections

No public corrections.

Score contribution

+1.12
Confidence
85%
Outcome
25% outcome
Importance
4 / 5
Contribution
+1.12

This page displays the scored record as published; the website doesn't recompute or adjust the score.

Provenance

The Fed and US Treasury will inject a major new wave of fia…
Methodology version
v1.0.0
Last computed
July 5, 2026
Made on
2024-04-08

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Evidence firstMethodology