Net Liquidity
The measure of actual liquidity supplied to the market, calculated by subtracting the Treasury General Account (TGA) and Reverse Repo (RRP) balances from the Fed's Balance Sheet.
Market Impact
RISING / BULLISH
Price appreciation in risk assets (stocks, crypto). Creates an environment tolerant of PER expansion.
FALLING / BEARISH
Increased market volatility. Valuation adjustments likely, especially in growth stocks.
Context 2026
In 2026, with the end of QT and adjustments to Digital Fiat Currency (CBDC) reserves, qualitative changes in quantitative policy are in focus. The fluctuation of this real liquidity determines market resilience more than simple interest rates.
OmniMetric Relevance
Extremely High. Forms the baseline of the GMS Score and functions as a fundamental variable measuring the market's 'buying power'.