📊 Market Analysis: Fed Liquidity & Bank Reserves
Post: The Fed isn't injecting money just to pump the market 📈. Instead, they are addressing the issue of declining bank reserves 🏦.
(I posted about this last month: the bank reserve ratio dropped to 12.3%, causing significant volatility in the SOFR rates. This is a clear sign of liquidity tightening ⚠️.)
Therefore, the Fed is stepping in to inject cash to restore reserves to an "ample" level. This is a preemptive strike to prevent a repeat of the 2019 Repo Crisis 🛑💸.
Comment: To put it simply: the market doesn't care if you call it QE or just a "Fed rescue" 🤷♂️. When bank reserves start to overflow, that excess liquidity will naturally flow into the market bit by bit 🌊💰.
Conclusion: Based on current data analysis, the market shows signs of a potential rebound between April and June 🗓️🚀.
⚠️You can research more on this because it is an important thing to promote the market 🔍
🔷It should not be overlooked.
