🚨 FED CLARIFIES BOND BUYING STRATEGY

🏦 NY Fed President John Williams: Recent bond purchases are about liquidity — not stimulus.

What’s Really Happening • 💧 Reserve Management: Bank reserves are now at an “adequate” level

• 🧾 Targeted Purchases: Focused on short-dated Treasury bills, not long-term bonds

• 🎯 Policy Control: Ensures firm control over the federal funds rate

Why the Fed Is Doing This • 📉 Ease year-end funding pressures

• 🌊 Reduce money-market volatility

• ⚙️ Maintain ample liquidity without changing policy stance

Key Takeaway This is a technical operation, not QE.

No pivot. No stimulus. Just stability and control.

📌 Liquidity management ≠ monetary easing.

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