Fed’s $125B ‘Stealth Easing’ And 67% Rate Cut Odds Hand Crypto A Window

By Coin Edition
27 days ago
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  • The Fed injected $125 billion into the U.S. banking system over five days.
  • This “stealth easing” contradicts the Fed’s hawkish tone, easing short-term funding stress.
  • Markets have responded, with the CME FedWatch Tool now showing a 67.3% chance of a December rate cut.

The U.S. Federal Reserve has injected $125 billion into the banking system over the past five days, its biggest short-term liquidity move since early 2020. The largest single-day injection, $29.4 billion, came on October 31 through overnight repo agreements, according to official Fed data.

Repos allow banks to trade Treasuries for cash overnight, helping to ease short-term funding stress. The action follows a drop in bank reserves to $2.8 trillion, the lowest in over four years.

Powell Talks Tough, But Actions Show ‘Stealth Easing’

Analysts say these …

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