🔥ATTENTION🔥
💥If the U.S. follows in Canada's footsteps, the liquidity INJECTION WILL VERY LIKELY SPARK the MARKETS, including #Crypto
🚀This is more important than the rate cut itself
🔸The Bank of Canada CUT the interest rate for the SIXTH time in the last 12 months
🔸But the most important thing is that they announced the END of QT, meaning they stopped SELLING ASSETS and announced that they will start BUYING in March
🗣Bank of Canada: "We are ending QT. The Bank will resume asset purchases, starting gradually and then accelerating"
🔸The U.S. FED has been reducing its balance sheet through the SALE of assets by $2T since March 2022
🔸This is the FIRST TIME IN HISTORY that they cut the rate while continuing to sell assets
🔸Cutting the rate is an expansive monetary policy, which makes money cheaper as loans become less expensive
🔸Reducing the BALANCE SHEET through the SALE of assets (QT) is a RESTRICTIVE monetary policy aimed at LOWERING inflation
🔸With the SALE of $25B in ASSETS per MONTH by the FED, we see that its BALANCE SHEET fell below $7T for the first time since 2020
🔸If the FED announces today that the SALES of the balance sheet will be STOPPED, according to experts, the market will rise even if the interest rate is NOT cut
🔸Quantitative tightening contradicts rate cuts while the FED eliminates its balance in the market, keeping bond yields high
🔸If they end QT today, this would cause bond yields to finally drop, which is GOOD for stocks #bitcoin and
#cripto #Fed #EEUU #banco #Canada