š¢š§½ Donāt Just Watch Rate Cuts ā The Fedās REAL āBig Stepā Could Shock Markets Tonight š·
ā¦ļø Everyoneās obsessed with a possible rate cutā¦
But the bigger move may have already started ā and it could reshape liquidity across the entire financial system.
š The Fed quietly ended Quantitative Tightening (QT) on December 1.
Bank reserves have now dropped to levels historically linked with funding stress. SOFR ā the core overnight rate ā has already hit the top of the Fedās policy range multiple times.
š„Translation:
Liquidity is tightening fast⦠and the Fed may be forced into a major shift tonight.
šæ This isnāt just about rates.
This is about the Fed deciding whether to re-open the liquidity taps.
š¦ Markets are not ready if they do.

