Econographics

Tech stocks’ sharp selloff has grabbed headlines, but the real risk may be in tightening US dollar funding. As the Fed drains liquidity and repo rates surge above policy benchmarks, hedge funds and foreign banks—holding trillions in dollar assets—face rising pressure. The danger isn’t just market volatility, but whether global finance can withstand a squeeze in the world’s core funding system.

Regardless of how the Supreme Court rules, the case will shape US economic policy for years to come.

From Beijing’s perspective, a successful offshore yuan-denominated stablecoin could replace some existing yuan transactions, increase the purchases of offshore bonds, and even make them technologically more efficient.