FED TREASURY PURCHASE UPDATE
WHAT HAPPENED:
The #Fed just announced they will START BUYING shorter-term Treasury securities again after years of reducing their balance sheet (QT).
KEY POINTS:
✅ Fed confirmed: "Reserve balances have declined to ample levels"
✅ Will purchase T-Bills "as needed" to maintain reserves
✅ This marks END of Quantitative Tightening era
✅ Purchases begin on ongoing basis
WHAT THIS MEANS:
📈 Liquidity injection incoming
📈 More supportive for risk assets
📈 Potential USD weakness
📈 Bullish signal for crypto markets
This is a significant shift from the balance sheet reduction we've seen since June 2022!
