Part 6/14:
Insights from a recent FOMC meeting reveal that the Fed is in a tricky position—balancing concerns about employment and inflation. Significantly, the Fed is engaging in a form of "money printing," primarily by purchasing Treasury bills—an activity some experts deem akin to quantitative easing (QE). While the Fed avoids the term to sidestep market panic, the implication is clear: liquidity expansion is underway.
Lynn Alden, a respected macro analyst, highlights this shift, noting that starting December 11, 2025, the Fed plans to increase securities holdings through short-term Treasury purchases. This move signals an end to quantitative tightening (QT) and a return to monetary easing—albeit in a muted form—laying the groundwork for potential liquidity surges in 2026.