Market Overview - S&P 500 futures increased by 0.42% before the opening bell, following a 0.88% gain in the previous session, with the index less than 1% away from its all-time high [1] Federal Reserve Actions - The U.S. Federal Reserve cut interest rates by 25 basis points to 3.5%, which typically encourages more investment in equities [2] - Traders are currently pricing in a 46% chance of another interest rate cut in March, with no expectations for a cut in January [2] Liquidity Programs - The Fed has initiated monthly reserve management purchases (RMPs) of $40 billion to enhance liquidity in the repo market, aimed at stabilizing borrowing costs for banks [3] - Although the Fed states this is not a new round of quantitative easing, it is perceived by some on Wall Street as beneficial for stock prices [4] Economic Impact - The Fed's balance sheet has increased by $21.1 billion over two weeks due to RMPs, which is expected to support M2 and bank loan growth, contributing to nominal GDP growth of approximately 5% [5][6] - Analysts at Wells Fargo suggest that the expansion of the Fed's balance sheet will create buying opportunities during market dips, as liquidity enters a mini upcycle [6]

The U.S. Federal Reserve has quietly made a move that markets have not seen in years and one that could have major consequences for risk assets like cryptocurrencies. With quantitative tightening (QT) now officially over, the Fed has confirmed it will begin buying around $40 billion worth of short-term U.S. Treasury bills every month. Fed officials say the move is merely “technical,” meant to keep the financial system running smoothly. But history shows that when the Fed starts adding money back into th ...

So the Fed is now buying Treasuries again. $40 billion of bills a month...@FTAlphaville covers it well. And with a sense of humor - Sure John LOL. And we have a "new" acronym to learn RMPs - Reserve Management Purchases. The last line of the article is notable.“However, given the stubbornness of the recent repo market volatility, Alphaville would be surprised if the Fed doesn’t unveil a dose of “temporary open market operations” before then — just to make sure Christmas isn’t ruined by an end of year fundin ...

A lot of people interpreted your comments at the October meeting that you know when there's a foggy [clears throat] situation we slow down to mean that you know there wouldn't be a cut now there'd be a cut in January instead. So it'd be good to get a sense of why did the committee decide to move today rather than to move in January instead. Thank you.>> Right. So in October I said um that there was no certainty of moving and that was uh that was indeed correct. I said it's possible you could think about it ...

LIVE Fed Meeting Today: FOMC Expected to Cut Rates. Pay Attention to the 'Dot Plot.' Last Updated: 15 min ago Fed May Be Prepping an Extra Move, Alongside Rate Cut Topics Memberships Subscribe to Barron's Tools Customer Service Cryptocurrencies Data Magazine Markets Stock Picks Barron's Live Roundtable Barron's Stock Screen Personal Finance Streetwise Advisor Directory Saved Articles Watchlist Newsletters Video Center By Karishma Vanjani The Fed is widely expected to take interest rates a notch lower today, ...