2025-12-09 17:59:17

Mark Cabana, an interest rate strategist from Bank of America, recently made a bold prediction—this veteran who once worked in repo trading at the New York Fed believes that next Wednesday, in addition to the usual 25 basis point rate cut, Powell will take a big step: buying $4.5 billion in short-term Treasury bills each month.

According to him, this bond purchase program will officially start in January next year. The goal is clear: inject liquidity into the market and push repo rates down. After all, the repo market has been a bit tight lately, with rates spiking sharply.

In plain terms, the Fed may be about to restart a variant of quantitative easing. But this time, the focus is on short-term liquidity, and the approach is much more refined than before. How will the market react? We’ll probably find out next Wednesday.

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CryptoSurvivor

· 12-12 00:22

Here we go again, damn it. It's always the same old trick. --- 450 billion? Has the buyback market really reached its limit this time? --- Is this sophisticated operation? I think it's just a rehash of the same old thing. In the end, money still has to be spent. --- Wait, is this hinting that there's a liquidity problem? Why does everything seem so tense? --- The official launch is not until January next year. These next few months depend on who can't sit still first. --- Tightness in the buyback market... Is this a good thing or a bad thing? The signals seem very mixed. --- The real showdown will be next Wednesday. Betting one dollar, the market will definitely crash. --- Another variant of QE? This time it's just soup, no meat. Short-term arbitrage is back.

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DaisyUnicorn

· 12-11 08:40

Coming back with this again? Every time you say there's hype, the flowers have already felt that cold wind on the chain.

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GasGuzzler

· 12-09 18:26

Injecting liquidity again? I can guess the Fed’s tricks with my eyes closed. --- Powell better show some real skills next Wednesday, or it’s just for show. --- $4.5 billion in short-term debt purchases... Sounds like they’re pumping the repo market. Will it work? --- A variant of QE? Let’s be real, it’s just QE with a new label. --- Not starting until January next year? Just keeping the market in suspense, huh? --- The repo market has been this tight for a while—they should’ve acted sooner, only thinking of it now? --- Short-term Treasuries are in such high demand? That really shows there’s an underlying liquidity problem. --- Has Mark ever predicted anything accurately? I kind of doubt it. --- Let’s see what happens next Wednesday—US stocks are probably going to skyrocket again. --- Will liquidity injection fix the root problem? Isn’t this just drinking poison to quench thirst?

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SerumDegen

· 12-09 18:24

yo cabana cooking up the copium again lmao... 45b monthly on short duration? that's just qe with extra steps fr

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BlockchainArchaeologist

· 12-09 18:21

Another QE variant again, I’ve memorized the Fed’s playbook by now… Wait, is this really just a short-term operation this time? Feels more and more like they’re patching up leaks. We’ll see the real outcome next Wednesday. I bet five bucks the market will go up first, then down. How many times has this guy’s prediction actually been accurate? Feels like everyone making statements now is just being a hindsight expert. It’s only $45 billion, this tiny amount can’t possibly ease the current famine. They won’t get serious until January next year? Then what’s the point of saying all this now, just sending up a smokescreen in advance? Short-term liquidity tightness… this is the real root of the problem, isn’t it?

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ShitcoinArbitrageur

· 12-09 18:06

Here are a few distinctive comments for you: Here we go again, the Fed’s tricks are getting old. Hype first, action later—now it’s the short end’s turn. What’s $45 billion? That number was nothing last year, inflation hasn’t really come down yet. Powell’s about to print money again? I’m going all in, who cares about the repo rate, it’s all just smoke and mirrors anyway. Wait, really? It doesn’t even start until January next year, looks like the same old “getting ready” routine. I don’t really get the short-term Treasury part—can someone explain why not just buy stocks directly? Another QE variant? Feels like the Fed is just playing word games, but it’s the same old story. See you next Wednesday, I’m already gearing up—looser liquidity is always bullish.

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