FED QE IN 2026? The Real Pivot No One’s Talking About
Everyone is watching rate cuts, but the market is preparing for something bigger: the Fed potentially restarting QE in January 2026.
Stocks are already signaling it — the S&P 500 just closed near its all-time high despite restrictive rates, meaning investors are positioning for future liquidity, not current conditions.
The economy is split:
Asset holders are fine as stocks rise.
Small businesses + lower-income consumers are getting squeezed.
Layoffs and credit stress are climbing.
Rate cuts won’t fix this imbalance.
The real focus is the Fed’s $6.5T balance sheet and what comes after the Dec 9–10 FOMC meeting.
Some major banks already expect $45B/month bond buying from early 2026 — not 2020-style QE, but still fresh liquidity.
Markets move before the announcement, not after.
Current setup:
Stocks near record highs
December rate cut priced in
Balance sheet becoming the key tool
Stress rising for small businesses + consumers
2026 liquidity expectations quietly building
If the Fed even hints at QE, it could kick off the next liquidity cycle — and historically, crypto leads when liquidity turns.PLEASE FOLLOW BDV7071.
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