Next week, the Federal Reserve will take major action! Don't just focus on interest rate cuts; the real big move might be 'injecting money' of $45 billion? $BTC $ETH
A former New York Fed expert has predicted that Powell is likely to announce next Wednesday that starting in January, the Fed will aggressively purchase $45 billion in Treasury bonds each month! This is not a small move; it means the Fed will restart the 'money printing machine', directly injecting massive liquidity into the market. Why the urgency? Because Wall Street has found that the 'surplus' (reserves) in banks is almost insufficient, and the repo market interest rates are surging, causing the heartbeat of the financial system to become unstable. If they don't 'provide blood transfusions' soon, it could lead to serious trouble.
This wave of operations appears to address the year-end 'cash crunch' and stabilize short-term interest rates, but the underlying signal is even more significant: nearly three years of quantitative tightening (QT) is truly about to turn around! Experts break down that out of this $45 billion, $20 billion is for daily needs, and an additional $25 billion is to fill the gap left by the previous 'aggressive balance sheet reduction'. Moreover, this purchasing spree is expected to last at least six months.
An even more subtle timing is that all of this is happening at a crucial moment when Powell's term is coming to an end, and the Fed may 'change leadership'. No matter who the next leader is, maintaining a smooth market transition is the top priority. So, this is not just a technical operation; it is also paving the way for next year's monetary policy.
The market is currently only fixated on interest rate cuts, possibly underestimating the power of this 'balance sheet expansion' card. Once the faucet is turned on, the global liquidity landscape will be affected. Where do you think this 'water' will flow? What does it mean for the Chinese market? Share your thoughts in the comments! #亚洲家族办公室加密资产配置 #美SEC推动加密创新监管
