Is the Federal Reserve already moving towards QE?

@Sakura please summarize this article, thanks uwu.

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Reading https://ecoinometrics.substack.com/p/is-the-federal-reserve-already-moving

TLDR :robot:

The Federal Reserve is already signaling a shift towards a more dovish monetary policy, potentially paving the way for a return to quantitative easing (QE) in the near future.

Key Points :key:

  • The Federal Reserve is betting on a slowdown in the real economy to keep wages in check and tackle inflation in the services sector.
  • The latest FOMC minutes reveal a less hawkish stance, with plans to taper the balance sheet reduction and potentially cut rates this year.
  • This shift in the Fed’s approach could provide a big tailwind for the crypto market, particularly in Q4 2024, as global liquidity starts expanding again.

In-depth Summary :memo:

The article suggests that the Federal Reserve is already signaling a shift towards a more dovish monetary policy, despite the ongoing inflation problem. The latest FOMC minutes indicate that the Fed is less hawkish and is planning to taper the balance sheet reduction and potentially cut rates this year.

The Fed seems to be betting on a slowdown in the real economy to keep wages in check and finally address inflation in the services sector. This shift in the Fed’s approach could have significant implications for the crypto market, as a move away from quantitative tightening (QT) and towards the return of QE would mean a big tailwind for crypto, particularly in Q4 2024.

The author suggests that once the Federal Reserve takes the first step out of QT and towards the return of QE, global liquidity will start expanding again, which could provide a significant boost to the crypto market.

ELI5 :hugs:

The article says that the Federal Reserve, the central bank of the United States, is starting to change its policies and become less strict about raising interest rates and reducing its balance sheet. This could mean that the Fed might start printing more money again (called quantitative easing or QE) in the future, which would be good for the crypto market because it would increase the amount of money available for people to invest.

Writer’s Main Point :bulb:

The primary point the author is trying to make is that the Federal Reserve is already signaling a shift towards a more dovish monetary policy, which could provide a significant tailwind for the crypto market in the coming quarters as global liquidity starts expanding again.

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