Today’s FOMC meeting shifted the entire outlook.

The 25 bps cut was expected, but the real news came right after.

The Fed confirmed it will begin buying T-bills starting December 12.
The initial size is $40B per month, and Powell made it clear that these elevated T-bill purchases will continue for the next few months.

Remember: QT ended on December 1.
Now the Fed is adding liquidity again, not full QE, but still meaningful.

Powell also said U.S. economic growth is expected to improve in 2026.
If that plays out, ISM likely moves above 50 next year, which historically signals a strong altseason.

Powell removed the idea of rate hikes, saying the choice from here is either pause or cut.
He highlighted rising inflation, but also stressed that the labor market is weakening.

He also hinted that rates are sitting in a “neutral zone,” meaning aggressive cuts are unlikely in the near term.

And to be clear, the liquidity move isn’t QE.
They’re buying short-duration bonds, not long-term assets.

Overall, the meeting leaned slightly hawkish because of the pause in cuts and no QE, but the liquidity shift is still a major development.

#FedRateCutPrediction