926-Sol
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Analysis: The Federal Reserve is not “buying short-term debt” this time — the essence is still QE, but it is an upgrade from quantity to quality.
Former Morgan Stanley NFA trader Jeff Park pointed out:
The Federal Reserve's latest “reserve management bond purchase program” may not be called QE verbally, but its effect and mechanism are essentially still QE — it has evolved from Quantitative Easing to Qualitative Easing.
🌐 Why is this called “Qualitative Easing”?
Under the “ample reserves system,” the risk weight of reserves in the regulatory framework is 0%, and the balance sheet flexibility is far stronger than that of short-term government bonds.
This explains why two things have happened so suddenly:
The SLR (Supplementary Leverage Ratio) rule was relaxed before Thanksgiving.
Two weeks before QT ended, the Federal Reserve suddenly announced purchasing $40 billion of short-term government bonds each month.
The reason is simple:
Short-term government bonds are “near-money,”
but reserves are the perfect money of the financial system.
Therefore, this time it is not merely to alleviate short-end pressure, but rather the Federal Reserve is actively improving the “currency quality” of the banking system.
💥 Stablecoins: The most urgent “currency quality issue” at present
Jeff Park further pointed out:
In the process of reconstructing the global dollar system, stablecoins are the most pressing currency quality issue that needs to be addressed.
The reason is straightforward:
Stablecoins are the “outlet valve” of the dollar credit system.
They meet the demand for high-speed, global settlement assets.
Before the currency quality issue is resolved, cryptocurrencies will not disappear; they will become increasingly important.
In other words:
When the Federal Reserve is doing “qualitative QE,” the crypto industry is building a “private QE system” — stablecoins are its core asset.
Former Morgan Stanley NFA trader Jeff Park pointed out:
The Federal Reserve's latest “reserve management bond purchase program” may not be called QE verbally, but its effect and mechanism are essentially still QE — it has evolved from Quantitative Easing to Qualitative Easing.
🌐 Why is this called “Qualitative Easing”?
Under the “ample reserves system,” the risk weight of reserves in the regulatory framework is 0%, and the balance sheet flexibility is far stronger than that of short-term government bonds.
This explains why two things have happened so suddenly:
The SLR (Supplementary Leverage Ratio) rule was relaxed before Thanksgiving.
Two weeks before QT ended, the Federal Reserve suddenly announced purchasing $40 billion of short-term government bonds each month.
The reason is simple:
Short-term government bonds are “near-money,”
but reserves are the perfect money of the financial system.
Therefore, this time it is not merely to alleviate short-end pressure, but rather the Federal Reserve is actively improving the “currency quality” of the banking system.
💥 Stablecoins: The most urgent “currency quality issue” at present
Jeff Park further pointed out:
In the process of reconstructing the global dollar system, stablecoins are the most pressing currency quality issue that needs to be addressed.
The reason is straightforward:
Stablecoins are the “outlet valve” of the dollar credit system.
They meet the demand for high-speed, global settlement assets.
Before the currency quality issue is resolved, cryptocurrencies will not disappear; they will become increasingly important.
In other words:
When the Federal Reserve is doing “qualitative QE,” the crypto industry is building a “private QE system” — stablecoins are its core asset.
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
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