Fed Cuts Rates to 4% as Market Liquidity Drains — Here’s What Powell Isn’t Telling You

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📉 The Fed’s Big Move: Rate Cuts, Balance Sheet Pivot & What It Means for Markets | Federal Reserve Analysis 2025

Welcome back to the channel! Today’s episode dives deep into the Federal Reserve’s most important decision of the year. The Fed is expected to cut interest rates by 0.25% — but that’s not all. Jerome Powell and the FOMC might also end balance-sheet tightening (QT) early, signaling a major policy shift that could reshape liquidity and market sentiment for months to come.

We’ll break down:
🔹 Why the Fed may pause its $6.5 trillion balance sheet runoff
🔹 How “quantitative tightening” drained liquidity from financial markets
🔹 Why money markets are flashing stress signals
🔹 The potential return of a more supportive, liquidity-friendly Fed
🔹 What this all means for investors, stocks, and the economy heading into 2026

The Fed’s decision could determine whether markets keep rallying — or face a sudden liquidity crunch. We’ll explore data from Goldman Sachs, Nomura, and the Treasury to explain why reserves are no longer abundant and what that means for interest rates, repo markets, and risk assets.

If you want to understand the next phase of U.S. monetary policy — from rate cuts to reserve management — this video is for you.

📊 Chapters:
00:00 Intro
01:00 Fed Rate Cut Expectations
02:30 Balance Sheet & QT Explained
05:00 Liquidity Risks Emerging
06:30 The “Repocalypse” Warning
07:30 What It Means for Investors

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