๐ฆ **FED DAY: EXPECT RATE CUT + BILL BUYING BOOST**
Markets expect the Fed to cut rates to **3.50%-3.75%** tomorrow. But thereโs more:
Bank of America forecasts an additional move โ **~$45B/month in short-term Treasury bill purchases** to maintain bank reserves and prevent liquidity stress.
**Why it matters:**
- ๐ธ Combined with MBS reinvestments, total purchases could near **~$60B/month**.
- ๐ Labeled โReserve Management Purchasesโ โ not QE, but still adds liquidity.
- ๐ก๏ธ Aims to stabilize money markets amid rising Treasury issuance.
**Market take:**
Even if not called โQE,โ this flow supports **liquidity conditions** and can ease pressure on risk assets.
Historically, Fed balance sheet expansion โ under any name โ tends to lift crypto.
*Liquidity is liquidity. Watch what they do, not what they call it.*
#Fed #RateCut #Liquidity #Treasury #Crypto #Macro #BinanceSquare
