🚨✴️ FED MOVES, MARKETS SNOOZE! ↩️⬇️
While everyone was busy guessing about rate cuts, the Federal Reserve quietly shrank its balance sheet — selling and redeeming assets it built up over the last 5 years! ⚡
📊 October Update:
• Fed balance sheet down to $6.6T (from a record $9T in 2022)
• Adjusted for GDP → back to April 2020 levels 🛡
• Comparison: Fed assets = 22% of GDP (lowest among major economies)
→ Bank of England: ~25%
→ China: ~34%
→ ECB: ~40%
→ Japan: ~110% ⚡
💡 Why This Matters:
The Fed expanded its balance sheet to support banks and boost lending — which also flooded markets with liquidity, driving up stocks, real estate, and crypto 🚀
Now that it’s shrinking? Liquidity tightens → potential price pressure across risk assets.
We just don’t feel it yet because everyone’s still betting on rate cuts 🔥
📌 Stay alert, traders. The quietest Fed moves often spark the loudest market reactions.
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