Crypto traders are bracing for a potential Federal Reserve pivot this week—not on interest rates, but on liquidity. The focus has shifted from rate cuts to whether Chair Jerome Powell will quietly launch a ‘stealth QE’ program through Treasury bill purchases. This subtle shift could mark the beginning of renewed balance-sheet expansion, reshaping the liquidity environment for digital assets.
about Fed's 'Stealth QE' Pivot Could Reshape Crypto Liquidity BackdropMark Cabana
0 posts last weekBofA Warns Fed Rate Pause May Disappoint Bond Investors
Bank of America Securities’ head of U.S. rates strategy, Mark Cabana, anticipates the Federal Open Market Committee (FOMC) will maintain its current interest rates, disappointing bond investors hoping for cuts. Cabana expects Chair Jerome Powell to offer minimal forward guidance, sticking to a data-dependent approach. He notes that the bond market has priced in a September rate cut, but the Fed is unlikely to signal such a move. Additionally, Cabana predicts dissent among FOMC members pushing for earlier cuts, though BofA economists foresee no cuts in 2025. With equity markets, the dollar, and labor data showing minimal restraint, Cabana questions how restrictive current monetary policy truly is.
about BofA Warns Fed Rate Pause May Disappoint Bond Investors