this is a great piece by Joseph Wang fedguy.com/trapped-liquid… joseph, why does QT need liquidity drained from the RRP? My understanding was that funds in the RRP came from reserves/deposits, meaning funds flowing into the RRP was a form of tightening. thanks!

haven't seen this in the data yet. RRP was up in December, which is a form of QT. I don't dispute the take from the FT, but it seems based on what *could* happen next year

another reason to switch to #quarto

How does the SEC view #bitcoin? $GBTC, ETFs, Lightning, mining, custody? Unchained Capital is sponsoring a fireside chat with Hester Peirce on Feb 6. If you're anywhere near Atlanta, you don't want to miss this! s/o to Atlanta BitPlebs Atlanta BitDevs for putting it together

happy jobs report friday.... A few charts to put things in perspective. 1) 350,000 jobs created. Mostly government jobs? Nope. 2) Unemployment is low across educational levels. 3) Combined labor conditions are showing an historically tight labor market

I don't really understand how people can expect lower prices. Since 1960, core CPI has *never* had a negative YoY change. Ever.

Potentially unpopular op: the gulf between social media GenAI hype and enterprise GenAI implementation has never been wider. In fact, the two have no relation at this point. At enterprise level, I haven't heard anyone care about new model releases in more than 6 months.

The financial institutions best positioned for success in their use of AI (classical ML too) have focused on and will continue to focus on two things: data strategy and technical talent. Yet you will see very few social media posts about these two topics...

Another good application of LLMs to the analysis of 10Ks, this one by Charles CY Wang and Matthew Shaffer -> papers.ssrn.com/sol3/papers.cf…

This is some of the best research on language models I've seen, comparing ability to classify central bank communication. spoiler alert - good'ol roberta large dominates over llama 4, gpt 4, deep seek, gemini.... arxiv.org/abs/2505.17048