🚨 Fed Repo Injection ≠ QE
Here’s what’s really happening 👇
The Fed is adding ~$6.8–$7B to the system via repo operations tomorrow, and the headlines are already screaming “QE is back!”
Not quite.
🔹 What is this?
A repo is a very short-term loan (often overnight).
The Fed gives cash → banks post high-quality collateral → cash is paid back the next day.
🔹 Why does the Fed do this?
• Keep enough cash in the system
• Prevent short-term interest rate spikes
• Reduce stress in money markets
• Especially common around year-end liquidity squeezes
🔹 Why this is NOT QE
❌ Not permanent
❌ Not money printing
❌ Not policy easing
✅ Cash must be repaid
Think of it as routine maintenance, not a policy shift — like adding oil so the engine doesn’t overheat.
📌 Key takeaway:
This doesn’t mean the Fed is turning dovish…
But it does tell us liquidity is still tight under the surface.
👀 Markets are watching.
🟠 So is $BTC
