The Federal Reserve's new round of major actions is here—balance sheet expansion plus rate cuts, both happening simultaneously, signaling a move towards significant easing.

The latest data is hot off the press: the Federal Reserve plans to purchase approximately $220 billion in short-term government bonds over the next year. This is not empty talk—it's been officially underway since December. The reason is straightforward: financial system reserves are insufficient, falling below the "moderately ample" safety line. How are they doing it? Buying $40 billion each month, with two additional rounds of purchases in January, showing a very aggressive stance.

Key signals come from the latest meeting minutes, where the vast majority of decision-makers have already approved the rate cut in December. More importantly, their consensus is becoming clearer: as long as inflation continues to decline, further easing (continued rate cuts) is a certainty. Although there are some disagreements within the Fed about the pace of rate cuts, the dovish stance has become the mainstream—now it's just waiting for inflation data to provide the final confirmation.

With one hand expanding the balance sheet through bond purchases and the other shaping public opinion on rate cuts, the Federal Reserve's combined approach is sending strong signals of ample liquidity to the market. Has a new easing cycle quietly begun? Capital markets are pricing it in wildly, and crypto assets are also seeking opportunities within this environment.