<p>CICC believes that the current liquidity in the U.S. financial market has tightened, but this is limited to fluctuations in the stock and bond markets, and a widespread liquidity crisis has not yet emerged. The article analyzes the status of U.S. dollar liquidity from both quantity and price dimensions, pointing out that liquidity indicators have risen this year, mainly due to the Treasury rapidly consuming the TGA account to release liquidity while the debt ceiling issue remains unresolved. At the same time, stock and bond volatility has intensified, but interbank market and offshore dollar liquidity remain relatively controllable</p>

<p>CICC pointed out that although liquidity in the U.S. financial markets has tightened, there has not been a widespread liquidity crisis. Liquidity indicators have risen due to the rapid depletion of the Treasury General Account (TGA) by the Treasury. Stock and bond market volatility has increased, but interbank market and offshore dollar liquidity remain manageable. If a liquidity crisis occurs, the Federal Reserve has sufficient tools for rescue and may halt balance sheet reduction or restart quantitative easing</p>

CICC: Currently, there is no widespread liquidity crisis