Raoul Pal, founder of Global Macro Investor, predicts a significant liquidity surge in 2026 driven by the U.S. debt roll and potential monetary easing. Pal highlights that the $10 trillion U.S. debt roll will heavily influence global financial conditions, with the GMI Liquidity Index expected to rebound to $135 trillion in 2025 and possibly reach $170 trillion by 2026.
Pal anticipates that post-shutdown Treasury spending and the passage of the CLARITY Act will enhance liquidity and boost crypto adoption. He notes that the current government shutdown has tightened liquidity, with the Treasury General Account accumulating funds and the Reverse Repo Facility being drained. Once the government reopens, Pal forecasts a Treasury injection of $250 billion to $350 billion, which could ease financial conditions and potentially weaken the U.S. dollar.
Raoul Pal Forecasts Liquidity Surge in 2026 Amid U.S. Debt Roll
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