🚨🧐 Everyone’s focused on the rate cut — but the real signal just flew under the radar 📢
I’ve been watching the plumbing, not the headlines — and the math just changed.
As of December 1, Quantitative Tightening (QT) is effectively finished.
The era of draining liquidity is over. 📢
Here’s what most people missed 👇
Over the past year, the U.S. Treasury pulled massive liquidity out of the system to refill its checking account to nearly $1 trillion. That was the drain everyone felt.
But now the safety valve — the Reverse Repo (RRP) facility — is basically empty.
There’s no more buffer left. ⚡️
That puts policymakers in a corner.
To avoid stress in the banking system, they must release liquidity back into the market.
The plan? Draw Treasury cash down to around $600B.
That means roughly $400 BILLION is about to flow back into the system. ⚡️📢
This isn’t speculation.
This isn’t hopium.
This is structural.
For the first time in years, liquidity flows have flipped positive.
So the real question is 👇
🤔 What happens next when liquidity turns from headwind to tailwind?
If this helped you see the bigger picture,
❤️ drop your thoughts, share the post, and let’s discuss.
