🏛️ BREAKING: Fed Minutes Signal a Major Policy Pivot
The Federal Reserve’s December meeting minutes are out — and they confirm a clear shift in direction. This isn’t speculation anymore; the policy tone has officially changed.
🔹 Rate cuts are now live
The FOMC agreed to a rate cut in December, and discussions show officials are actively weighing further easing. The debate is no longer if rates should come down, but how fast and how far.
🔹 Move toward a neutral stance
Most policymakers now favor a more neutral policy position to protect the labor market. This marks a step away from the aggressive tightening bias that defined the last cycle.
🔹 Treasury purchases ahead
With reserves considered “sufficient,” the Fed sees it as appropriate to manage liquidity through U.S. Treasury purchases. This is not QE, but it does add liquidity and provides a structural backstop to markets.
📊 What this means for markets
The hiking cycle is effectively over
Liquidity conditions are quietly improving
A divided Fed increases sensitivity to inflation and jobs data, raising short-term volatility
The macro regime is shifting from “higher for longer” to “cautious easing”
Liquidity tides are turning — slowly, but decisively. Risk assets will be watching every data print closely.
