#FED Back in the Field!
For the first time since 2020, last week it injected 11 billion dollars into the REPO market. 👀
Last week, the FED pumped 11 billion dollars of liquidity into the REPO market for the first time since the 2020 crisis period. This may sound like a technical development, but it actually says a lot about the global financial system…
What is REPO?
In short: A tool through which the Central Bank provides short-term funding to banks. It means giving the markets a temporary but strong "breath."
And now… that breath has been given. After a 4-year break!
What does this mean?
Is there a liquidity contraction in the markets?
Is the FED returning to an expansionary policy?
Should we prepare for an economic turbulence, or are new opportunities arising?
Remember: Big changes also bring big opportunities.
In history, every shift in monetary policy has opened new doors to profit along with challenges. This could be such a moment!