INCREDIBLE🔥
YESTERDAY THE FED LOANED URGENTLY $50B TO ONE OR MORE FINANCIAL INSTITUTIONS, POSSIBLY BANKS
🎯Logan from the FED claims that if this continues, QE could come SOONER THAN EXPECTED...
👉THE LIQUIDITY PROBLEMS continue... We haven't seen anything like this since 2020
What is happening⁉️
🔸The demand for overnight repos surged to $50 billion, the highest daily level in nearly five years.
🔸Repos are short-term loans that the FED extends to banks when they need immediate liquidity.
🔸When this number spikes, it is not random; it means that banks are short on dollars.
Have we seen spikes like this last time⁉️
🔸Q3/Q4 2019, which forced the Fed to inject liquidity in 2020.
🔸And it's happening again, just days after the 25 basis point rate cut and Powell's hawkish tone (against cutting) for December.
🔸He stated that there is no guarantee of further cuts, but that the Fed would remain "flexible" depending on the data.
👉While Powell says that the policy is "moderately restrictive," banks are discreetly borrowing record amounts.
👉Even Logan from the Dallas Fed stated:
"If the recent rise in repo rates is not temporary, the Fed would need to start buying assets again."
🔸This is basically a warning that QE could return if this trend continues.
🔸This also explains why she supported ending QT because the system is tightening faster than Powell admits.
🔸We saw this exact setup in 2019, repo tension first, QT paused, liquidity injections after.
🔸Markets rose for months afterward.
📍#Crypto still isn't reacting because confidence remains low after the October collapse and big players are unwinding losses.
📍But this is exactly what the early phases of liquidity look like: quiet, restless, but with GREAT POTENTIAL.
📍The question is, will they wait for something to "BREAK" or inject liquidity BEFORE that⁉️
