The U.S. Federal Reserve may have just set the stage for the next wave of liquidity.
With a third consecutive rate cut and plans to buy 40 billion in Treasury bills over the next 30 days, this meeting marks one of the clearest pivots toward easing we’ve seen in years.
Here’s what you need to know in simple terms:
- The Fed cut rates by 25 bps again
- It will begin buying40B in T-bills from Dec 12
- Powell said these purchases will stay elevated “for a few months”
- He acknowledged job gains were overstated by 60,000
- He emphasized the labor market is soft
- He avoided any talk of hikes — in fact, a hike isn’t even a base case anymore
- Future cuts will be decided meeting-by-meeting, with no preset path
- Fed projections now show gradual cuts ahead, not tightening
Why this matters:
T-bill purchases are a stealth way of adding liquidity without calling it QE.
While the Fed isn’t branding this as stimulus, the effect is the same — money flows back into the system, boosting demand for risk assets.
With inflation cooling and employment data softening, the Fed now has more room to ease further if needed.
Bottom line:
The Fed is slowly but clearly shifting toward a more supportive stance.
Crypto, like other risk assets, doesn’t just move on words — it moves on liquidity. And today, Powell gave the strongest hint yet of where that liquidity is headed.
#NewsAboutCrypto #UpdateAlert #bullish
