🚨 FED’S LATEST MOVE: SHAKING UP THE CHARTS WITH A THIRD RATE SLASH! 🚨

As a battle-hardened trader who’s ridden more Fed-induced volatility than I care to count, let me break down today’s FOMC fireworks. The central bank just delivered its third rate trim of 2025, dialing the federal funds target down by 25 basis points to 3.50%-3.75%—a move that was telegraphed for weeks but still packs a punch for positioning.  Markets shrugged it off initially, with equities edging higher but no fireworks, as pros digest the hawkish undertones signaling a potential breather ahead.  Sentiment’s mixed: bulls sniffing opportunity in cheaper money, bears eyeing inflation stubbornness and labor wobbles. If you’re long risk, this is your cue to tighten stops; if sidelined, watch for breakout confirmation above key EMAs.

Liquidity Lifeline: $40B T-Bill Blitz Incoming

Kicking off tomorrow (December 12), the Fed’s unleashing a $40 billion monthly Treasury bill buy-in program to juice reserves and smooth short-term funding strains—essentially a stealth pivot from QT’s endgame.  This isn’t full-blown QE, but it’s rocket fuel for liquidity-starved corners of the market. Expect it to grease the wheels for leveraged plays, compressing yields and nudging capital toward yield-hungry assets. In my book, this tilts the board toward risk-on: bonds get bid up, dollar softens, and carry trades light up. I’ve scaled into calls on rate-sensitive ETFs here—vol’s your friend if you time the flows right.

Fed Fractures: Dissent Brews a Storm

The vote split 9-3, with hawks Jeffrey Schmid (Kansas City) and Austan Goolsbee (Chicago) pushing to hold steady, while dove Stephen Miran lobbied for a bolder 50 bps chop.  Powell’s post-meet rhetoric hammered home a “wait-and-see” vibe, with the dot plot eyeing just one more cut in 2026 amid projections for GDP ticking to 2.3% and core PCE easing to 2.5%.  Internal rifts like this scream policy fog—echoing 2019’s drama—and could spark whipsaws if data flips the script.

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