🔥🚨FED MAY CUT RATES AND BOOST BILL PURCHASES🇺🇸
The Fed is expected to cut rates to 3.50%-3.75% Wednesday. Bank of America predicts an extra move: ~$45B in monthly short-term Treasury bill purchases to maintain bank reserves and prevent liquidity issues. Combined with MBS reinvestments, total bill purchases could reach ~$60B/month. These “Reserve Management Purchases” aren’t QE—they aim to keep money markets functioning, not stimulate lending. While critics may see it as money printing, the move could reassure markets amid rising Treasury issuance and concerns about tightening liquidity.