Raoul Pal: Surging U.S. Treasury Spending Set to Boost Market Liquidity for Months

Raoul Pal, co-founder and CEO of Real Vision, expects a sharp rise in U.S. market liquidity as the Treasury General Account (TGA) begins deploying significant spending, according to BlockBeats.Pal said the liquidity boost could begin within days and continue for several months, creating a favorable environment for risk assets.QT expected to end in December as liquidity cycle turnsThe analyst predicts that quantitative tightening (QT) will conclude in December, paving the way for a gradual recovery of balance sheets and a potential weakening of the U.S. dollar.Pal emphasized that policymakers are trying to prevent a year-end liquidity crunch, suggesting the use of temporary liquidity tools including term funding and the Standing Repurchase Facility (SRF).Government aims to avoid slowdown ahead of electionsAccording to Pal, U.S. debt rollover will continue as the government prioritizes keeping the economy running hot ahead of the upcoming midterm elections.“The liquidity is coming,” he said, noting that increased Treasury spending will likely drive the next phase of market expansion.