🏛️ BREAKING: Fed Minutes Reveal MAJOR PIVOT - Rate Cuts, Neutral Stance & Treasury Buys All Confirmed
The Federal Reserve's December meeting minutes just dropped, and they confirm a historic three-part policy pivot.
📋 The Three-Part Shift:
✅ Rate Cuts Are Live: The FOMC agreed to a rate cut in December. The debate shows officials are now actively weighing easing policy against risks.
🔄 Shift to "Neutral": Most participants now advocate for a more neutral policy stance to protect the job market, moving away from a tightening bias.
💰 Treasury Purchases Ahead: With reserves deemed "sufficient," the Fed sees it as "appropriate to begin managing reserves through the purchase of U.S. Treasury securities." This is not QE, but it adds liquidity.
Direction is Set: The hiking cycle is over. The debate is now about the pace and timing of cuts, not whether they happen.
Liquidity Support: Treasury purchases for reserve management provide a structural backstop for market liquidity.
Divided Fed = Volatility: Unusual "division among officials" on both tightening and easing suggests future meetings could be highly sensitive to data, leading to market swings.
The era of "higher for longer" is officially transitioning into an era of "cautious easing." Liquidity tides are turning.
