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Fed Prepares for Market Rescue as Wall Street Eyes Trouble Ahead

  • Boston Fed President Susan Collins has contingency plans in place if liquidity vanishes or trading becomes disorderly.
  • Instead of relying solely on interest rate cuts, Collins points to the Fed's broader emergency toolkit.
  • JPMorgan CEO Jamie Dimon sees potential cracks forming in the Treasury market and expects the Fed to intervene after panic sets in.
  • Hedge funds are backing away from riskier trades involving Treasury spreads and derivatives, which could destabilize prices.

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