🔥 The U.S. Federal Reserve announced that it began today, December 12, 2025, purchasing short-term Treasury bonds with the aim of managing liquidity in the markets and maintaining an adequate level of bank reserves.
🔥Key points to understand the picture accurately:
🔥The central bank announced the purchase of about 40 billion dollars in short-term Treasury bills (T-bills) starting from December 12, 2025, as a technical step to manage liquidity in the markets, not as a broad asset purchase program aimed at stimulating the economy.
🔥This operation is considered a response to pressure in the short-term money market and is not necessarily traditional quantitative easing (QE) as in 2020, when asset purchases were very large (in the hundreds of billions monthly) to support the economy during the peak of the pandemic.
🔥Reports and analyses indicate that purchases could reach around 45 billion dollars.
🔥So, what will start tomorrow is a short-term bond purchase program to manage liquidity, not a QE program in the traditional manner that we witnessed at the peak of the COVID crisis.
