Jerome Powell just signaled a major policy pivot. A new liquidity cycle is beginning, and the implications for risk assets are massive.
The Federal Reserve has officially cut interest rates by 25 bps, but the real story is the immediate liquidity injection. Here is the full breakdown of the FOMC decision:
💡 Key Takeaways & Market Impact
* 1️⃣ Rate Cut Confirmed (25 bps): This is the third cut in the easing cycle, officially lowering the cost of capital and promoting risk-on behavior across global markets.
* 2️⃣ The Liquidity Shift: $40B/Month in T-Bill Purchases: Effective Dec 12, the Fed will begin buying $40 BILLION in short-term T-Bills monthly. Powell is calling it "Reserve Management Purchases," but this is a direct injection of new liquidity into the financial system.
3️⃣ End of Rate Hikes: Despite inflation remaining above the 2% target, the Fed signaled no further rate hikes are planned. This removal of a major headwind is a profoundly bullish signal for speculative assets.
4️⃣ Economic Goal: The clear aim is to inject fresh energy into a slowing U.S. economy, a move that historically correlates with simultaneous rallies in stocks and cryptocurrencies.
🚀 What This Means for Crypto & Bitcoin
\checkmark Liquidity Drives: The T-Bill purchases are expected to run for several months, directly fueling an environment favorable for crypto rallies.
\checkmark Risk-On Sentiment: Capital is expected to flow out of low-yield safe-havens and into higher-upside assets like Bitcoin.
\checkmark The Spark: This policy shift may be the definitive catalyst the next phase of the crypto market cycle was waiting for.
Are you positioning for the liquidity boom? Bullish or bearish after this announcement? 👇
#powellPivot #fed #Bitcoin #Liquidity #CryptoNewss
#TrumpTari ffs $BTC $ETH
