Why is SOFR truly the "policy interest rate" of the U.S. dollar world? 【Master Class 3.1 by Cheng Tan】

Preview of exciting content

Many people are watching the Federal Reserve’s rate hikes and cuts every day.

But the true determinant of dollar liquidity may have long ceased to be the federal funds rate.

After the financial crisis, the U.S. banking system entered the “ample reserve era.”

Banks are no longer short of money, and the traditional interbank lending market has rapidly shrunk.

As a result, a new interest rate has become the real core of the dollar system—SOFR.

It is no longer backed by traditional unsecured loans between banks,

But by the entire U.S. repurchase market, shadow banking system, and global dollar financing demand.

In this course, founder Cheng Tan of Tangtu Macro will systematically analyze:

Why, after QE, the Federal Reserve suddenly realized “it can’t control interest rates”;

Why ON RRP and reserve interest rates have become the new interest rate corridor;

And why SOFR is replacing the federal funds rate to become the true “market policy rate” in the dollar world.

You will find:

Today’s major asset price swings are not necessarily driven by the economy itself, but by the “water level” of dollar liquidity. Click here or see the course schedule below to unlock the full course ↓