ATTENTION🔥

THE PRESS WHEEL TO POWELL LEAVES US WITH A LOT MORE UNCERTAINTY

💥The FED is going to BUY SHORT-TERM BONDS... But it is NOT a QE...

What were the most relevant statements⁉️

🔹He states that a CUT in December is not guaranteed...

🔹As a result, the probabilities of another cut in December FELL from 90% to 66%...

🔹For that reason, the markets, including #Bitcoin, also fell slightly...

🔹He mentions that the DATA missing due to the SHUTDOWN is KEY... If the employment data comes out bad when the shutdown ends, the probabilities of another cut will INCREASE again

🔹In fact, several data points that anticipate the official data indicate that the labor market is weakening... Many LAYOFFS were even announced in recent days

🔹"AI is DIFFERENT from 2001, now there are CORPORATE PROFITS, in 2001 the bubble was obvious"

What is the situation with the PURCHASE of BONDS⁉️

▫️The FED has some private mortgage bonds called MBS

▫️Today the FED mentioned that in addition to ENDING the QT, they will REINVEST the earnings from those mortgage bonds into T-Bills (short-term bonds)

▫️It is not a QE per se, because in a QE the FED issues money to buy bonds...

▫️In any case, these PURCHASES do not increase the size of the FED's balance sheet...

▫️But Powell stated "WE WILL ADD RESERVES AT SOME POINT to the balance"

📍In other words, at some point the QE will resume, which would be VERY positive for the financial markets... The question is, when⁉️