For more on today's decision, let's get to senior economics reporter Steve Leeman, who is in Washington. Steve, >> hey Melissa. Yeah, the Fed following through on an expected hawkish rate cut, reducing rates by a quarter point to the new range of 3 and a half to 375, but signaling might be done cutting, at least for now.It appeared to buoy markets, however, with a more aggressive policy than expected for the balance sheet. On RA, the statement, what it did, it used language that it had used in the past to s ...

And let's bring in our first panel now, which is Barry Knap, the director of research at IronIides Macro, and Tom Lee, Fundstrat Global Advisors Managing Partner. Welcome to you both. Tom, you're more I don't want to make it sound like you have a point of view other than you're expecting a more hawkish Fed and Barry, you're expecting one that's a little bit more doubbish.So Tom, you're more in line with consensus right now. What would that look like. And why are you still bullish on stock prices.>> Uh, well ...

Core Insights - Billionaire investor Ray Dalio warns that the Federal Reserve's decision to halt quantitative tightening and resume balance-sheet expansion could lead to increased liquidity, benefiting gold and other assets like Bitcoin [1][2]. Group 1: Federal Reserve's Policy Shift - The Federal Reserve's announcement is seen as a significant shift toward easier monetary policy, despite being framed as a balance-sheet adjustment [2]. - Dalio emphasizes that the Fed's balance sheet expansion, combined with interest rate cuts and large fiscal deficits, could indicate a classic interaction between the Fed and the Treasury to monetize government debt [3]. Group 2: Impact on Gold and Other Assets - Dalio explains that when central banks buy bonds, it creates liquidity and lowers real interest rates, which can lead to financial asset inflation [4]. - Increased money creation is directly linked to gold's performance, as inflation and currency debasement typically drive up hard assets like gold [5]. - The higher the inflation rate, the more gold is expected to rise, as the supply of gold does not increase significantly compared to the increased supply of currencies [5]. Group 3: Broader Implications for Bitcoin - The liquidity from the Fed's balance-sheet expansion is likely to fuel financial-asset inflation, which could also positively impact Bitcoin [6]. - Former BitMEX CEO Arthur Hayes suggests that the Fed's quantitative easing could reignite the Bitcoin bull market, although some analysts caution that Bitcoin's technical setup remains fragile [6].

French far-right leader Jordan Bardella said his party will push the European Central Bank to relaunch quantitative easing if it comes to power https://t.co/SVDcuzrlo6 ...

Market Trends & Investment Opportunities - Tom Lee is bullish on the stock market and cryptocurrency, anticipating a strong November with the S&P potentially rising by 200-250 points [2][3][4] - Fundamentals are leading price in crypto, with Ethereum stable coin volumes and application revenues at all-time highs, suggesting a rally into year-end [6] - Quantitative Tightening (QT) is expected to end, leading to a return of Quantitative Easing (QE), which historically drives asset prices up [24] Impact of AI & Automation - Chat GPT's launch correlates with a decline in job openings, indicating a potential impact on the job market [8][9][10] - Companies are becoming more productive with AI, incentivizing them to do more with less, increasing profitability and value [11] - China is leading in robotic hardware manufacturing, producing more robots than Germany, South Korea, Japan, and the US combined, at a lower cost [12][13] Economic & Policy Considerations - The Federal Reserve may be forced to resume balance sheet expansion to maintain an ample level of reserves and ensure financial stability [23] - Nvidia is aiming to bring back American manufacturing to enhance national security and supply chain resilience [15][17][18]

Italian Deputy Prime Minister Antonio Tajani called on the European Central Bank to lower borrowing costs and resume quantitative easing to help prevent gains in the euro from hurting his country’s exporters https://t.co/z2ZaMzenqk ...

Rick Santelli joining us now from Chicago. And Rick, I know you pushed back on me in the past. I'm not implying bonds haven't moved, but is there anything that you're seeing that might send the yield meaningfully under 4%.You know, I really don't. And that doesn't mean we can't see it periodically and for a short period of time maybe move under 4% as a technical response if we happen to get a new fresh close for 2025 which is under 4% because it's currently the close of the year. That's it.The low close Apr ...

Gold Market Analysis - Gold is seen as a viable alternative to the dollar, especially with the acceleration of de-dollarization driven by sanctions and concerns about US fiscal policy [2] - Mainstream investors are starting to participate in the gold market, with major Wall Street banks recommending gold exposure in portfolios [2] - Central banks are expected to continue buying gold, competing with private investors and driving prices higher [4] - The dollar is expected to lose value, with the Federal Reserve cutting interest rates into rising inflation, further driving demand for gold [4] - China's central bank is divesting from US dollars and treasuries, replacing them with gold reserves to establish an independent monetary system [4] - The debasement trade narrative is taking hold as people recognize the flawed nature of CPI and seek assets that retain value [4][5] - Gold investors have outperformed US stock market investors, especially when pricing stocks in gold [3][4] Bitcoin vs Gold - Bitcoin is considered a risk asset correlated with the NASDAQ, while gold is seen as a safe haven store of value [8] - There is a risk of money flowing out of Bitcoin ETFs back into gold ETFs and gold stocks [1][8] - Bitcoin treasury companies may face downside risk and potential liquidation of their Bitcoin holdings [9] US Economic Policy - The Trump administration receives a failing grade (F) on economic policy due to massive government spending and deficits [13] - Tariffs are viewed as taxes that make American industry less competitive [14][15] - The speaker advocates for balanced budgets, debt restructuring, and deregulation to address fundamental economic problems [21][22][25]

The BOE's chief economist says it should run down its balance sheet of bonds built up under quantitative easing more quickly because it can shore up markets if strains emerge https://t.co/ykXkNWWjcL ...

Key Figure - Richard Werner, a renowned economist, originated the term "quantitative easing" [1] Industry Perspective - The content prompts critical thinking regarding central banking and geopolitical conflict [1]