The Federal Reserve is injecting $8.07 billion into the market at 9:00 AM today.


This news itself is not new—The Fed regularly conducts repurchase operations. But the timing is very delicate.
Some say: The Fed has lost control and has opened the printing press.
This statement is misleading.
This is not printing money; it is open market operations. The Fed does this every day, just in small amounts.
$8 billion is not considered out of control for the Fed's balance sheet.
But—
Currently, market sentiment is extremely tense. Oil prices are volatile, geopolitical tensions are rising, and stock futures are falling.
In this situation, how will the market interpret this liquidity injection?
Two words: panic.
Interestingly, the timing: at 9:00 AM ET, one hour before the US stock market opens.
Doing this at this time is usually not a coincidence.
It’s either to support the market or to prevent liquidity tensions from spreading.
So I don’t quite agree with the term "out of control."
The Fed is not out of control. It’s the expectations that are out of control.
When the market prices in negative news excessively, any liquidity injection is interpreted as "something went wrong, so they’re rescuing."
And once this interpretation forms, it’s more dangerous than the liquidity injection itself.
In one sentence: The Fed’s actions should be watched, but what’s more important is how the market interprets these actions.
When emotions are panicked, good news can also be seen as bad news.
#特朗普最后期限施压伊朗
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