THE FED ISN’T PUMPING STIMULUS — IT’S FIXING THE PLUMBING 🚰

Wall Street is panicking. Crypto Twitter is euphoric. Headlines scream "$38B Fed injection!"

Here’s the reality: this isn’t stimulus. It isn’t QE. It isn’t free money returning.

On December 10th, the Fed launched a $40B monthly Treasury bill purchase program. Purpose? Maintain ample bank reserves. Not inflation. Not asset prices. Reserves.

This is 2019 all over again. Back then, the Fed injected $60B/month during repo stress. Result? Inflation unchanged. Same mechanism. Same story.

The recent 25bps rate cut to 3.5–3.75%? Separate policy. Different tool. Different outcome.

The truth most ignore: millions will buy assets thinking this is stimulus. They’ll chase inflation that these operations cannot create.

Check it yourself: If bank reserves exceed $3.5T by Jan 15th without crisis, my thesis dies. Otherwise, history says 80% of similar Fed plumbing moves created zero inflationary impact.

Key takeaway: The Fed is not saving your portfolio. It’s preventing the system from freezing. Know the difference between pipes and pumps — it will save you.

$BTC

BTCUSDT

Perp 89,092.2 +1.15%

#FederalReserve #CryptoInsight #LiquidityFlows #MarketAnalysis #Bitcoin #BTC #MacroUpdate #FinanceEducation #WallStreet