2025-12-08 02:21:49

The real thing to watch with the Fed this week isn’t actually whether they cut rates or not.

The key is their $6.5 trillion balance sheet—how they adjust it, and by how much, will directly determine the market’s direction. To put it plainly, current monetary policy is running on a dual-track system: on one hand, balance sheet operations impact the wealth game for the rich; on the other, rate policy is used to appease ordinary people. Guess which one has a more direct effect on the markets? The answer is obvious.

Right now, the market is betting that starting in January next year, the Fed may buy $45 billion in short-term Treasuries each month, officially termed “reserve management.” Then in the first or second quarter, they’ll hit the brakes and reduce purchases to an average of $15-20 billion per month.

Any official comments on this are worth watching closely.

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MerkleDreamer

· 14h ago

The chart showing 6.5 trillion is the real scoop; interest rates and such are just a distraction.

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UnluckyLemur

· 12-09 12:42

The dual-track system is truly brilliant. On the surface, they lower interest rates to appease retail investors, but behind the scenes, the balance sheet is the real "money printer."

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BlockchainDecoder

· 12-08 07:05

According to research, the expansion of the balance sheet has a more direct transmission mechanism to asset prices compared to interest rate adjustments—this was discussed in detail in Bernanke’s early papers. Data shows that if the $45 billion monthly purchase scale is truly implemented, the resulting liquidity spillover effect will far exceed market expectations. It is worth noting that changes in the wording of official statements are often more valuable than the data itself.

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Tokenomics911

· 12-08 02:51

Damn, that 6.5 trillion table is the real game rule. The interest rate cut narrative is just a smokescreen.

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ForumMiningMaster

· 12-08 02:51

Damn, that 6.5 trillion table is the real money printer. Interest rate policies are just smoke and mirrors.

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MultiSigFailMaster

· 12-08 02:51

That dual-track approach—you're right, it's just about lowering interest rates on the surface to please the public, while actually using the balance sheet to fleece retail investors. $45 billion a month—feels like they're about to start draining liquidity again, then by next quarter they'll pull the same shrinking balance sheet trick... It's getting old to watch. The key is that the official statements are always full of empty talk; you have to read between the lines to really understand what's going on.

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JustAnotherWallet

· 12-08 02:41

This dual-track system is essentially designed to serve the wealthy.

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LiquidationSurvivor

· 12-08 02:29

This dual-track system is truly ingenious: the rich eat meat while ordinary people drink soup. That 6.5 trillion chart is the real key.

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