US Fiscal Expansion: The Other Side of the Liquidity Equation
Everyone’s watching Powell—but the real liquidity engine might be in Washington, not the Fed. Despite tight monetary policy, US liquidity is rising because of aggressive fiscal spending. The US government is pumping trillions into the economy—through defense budgets, industrial subsidies, and support for households. It’s stealth liquidity—stimulus dressed in policy clothes. The Fed may not be printing, but the Treasury is spending. And that spending bleeds into financial markets. Crypto benefits when new capital enters the system, even indirectly. That’s why BTC and altcoins remain resilient—even in the face of “tight” conditions. This is a reminder: monetary policy is half the story. Fiscal policy writes the rest.