Thanks for the shoutout! It seems I’m cold as ice 😎
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HAPPY QE! 🟢💸 Here’s how to read this chart 👇 🔹 These are pre-announced Fed Treasury bill purchases (not guesses) 🔹 Each line shows a live operation where the Fed buys short-term T-bills 🔹 Individual ops look small ($6–8B), but stacked = ~$40B per month 🔹 Settlement dates mark when bank reserves actually increase 🔹 Maturities are 1–12 months → front-end liquidity, not long-duration control What it means 🔍 🔹 QT is officially over 🔹 The Fed is now adding reserves by design to keep money markets stable 🔹 This caps repo stress, smooths funding, and supports leverage 🔹 Not 2020-style QE, but real balance-sheet expansion Why markets care 📈 🔹 Liquidity stops being a headwind 🔹 Risk assets get breathing room 🔹 This looks like 2019 pre-emptive easing, not crisis response 🔹 Synergy with upcoming eSLR relief → more bank balance-sheet capacity Bottom line ⚡ The Fed is back in the market, quietly. Not to pump assets, but to make sure nothing breaks.
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QE is coming. Here's why. Think of the financial system like a car engine. 1️⃣ The reserve ratios track the main fuel tank, and over the past year they’ve fallen to critically low levels. 2️⃣ RRP was the backup tank, silently feeding the engine with nearly $2.5T of extra liquidity while QT was draining the primary tank, but that backup is now empty too. 3️⃣ And SOFR–EFFR widening is the engine knocking, the same warning sound we heard before the 2019 repo crisis. With both fuel tanks depleted and the engine starting to strain, the Fed has no choice but to refuel the system: end QT, add reserves, and eventually restart bill purchases to keep the engine from stalling. $BOOMER $BASE #FOMC #FED
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