🌊 The Fed’s $105B Pivot: Liquidity Is Back ON

The Federal Reserve just expanded its balance sheet by $105 BILLION — the largest single-month increase since the 2023 banking crisis.

This isn’t noise.

This is a clear pivot and a signal that Quantitative Tightening is effectively over as we head into 2026.

⚡ Quick Breakdown:

🔄 The Move

After years of balance-sheet runoff, the Fed has quietly flipped to “organic growth”, injecting liquidity to stabilize bank reserves and absorb government debt pressure.

🧠 The Why

The system’s financial plumbing was running dry.

Without action, funding rates risked spiking and Treasury issuance could’ve hit turbulence.

Result? The Fed steps back in as buyer of last resort.

📈 Market Impact

A rising Fed balance sheet has historically been rocket fuel for risk assets.

This liquidity tailwind loosens financial conditions and can push capital into:

• Tech

• AI

• Crypto

🛡️ The Fed Put Is Back

This move helps avoid a credit crunch — but it also raises inflation risk just as price pressures were cooling.

🧠 Bottom Line

The message is loud and clear:

❌ Tight money era — DONE

✅ Ample liquidity era — BACK

Position accordingly.

$FXS $DUSK $PROM

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