FED OFFICIALLY STARTS TO INJECT 40 BILLION USD LIQUIDITY – WILL THE MARKET SOON 'HEAT UP'?
The Fed's T-bill buying schedule has been fully revealed: from 12/12 to 23/12, the Fed will continuously purchase T-bill lots worth 6.8–8.16 billion USD each session, totaling approximately 40 billion USD over 30 days. This is the first short-term liquidity flow after QT ends, marking an important shift in the Fed's regulatory policy.
In essence, purchasing T-bills is not long-term QE, but the impact on the market is real: the new money created in exchange for T-bills helps ease financial conditions and reduces pressure on the bond market. As liquidity improves, high-beta assets like stocks and crypto often react the strongest after a short delay.
In the context of:
U.S. growth slowing,
the labor market cooling,
expectations for interest rate cuts in early 2026 rising,
the Fed's move to inject 40 billion USD is seen as a sign of a 'soft pivot', paving the way for a more risk-friendly financial environment.
Liquidity is returning. By the time the market realizes it, asset prices have often already moved ahead.