Strategist: The Fed to Finally Add Liquidity Ahead of December Meeting Due to Ongoing Pressure

By: theblockbeats.news|2025/10/31 14:15:53
0
Share
copy

BlockBeats News, October 31st, the absence of direct response to recent market pressure has triggered active trading of SOFR futures - Federal Fund Rate basis swaps, while other rates in the repo market remain elevated. Wall Street strategists warn that with reserve shrinkage and more Treasury bill issuance injecting collateral into the market, funding pressure will persist until November.

Mark Cabana, head of U.S. interest rate strategy at Bank of America, stated that the ongoing pressure will eventually force the Fed to add liquidity ahead of the December meeting.

"The Fed's choice to remain passive in liquidity injections may be due to its belief that the current funding pressure is temporary," Cabana wrote in a client note, "but we think this is unlikely. As quantitative tightening continues, funding pressure is likely to persist and intensify." (FX678)

-- Price

--

You may also like

2025 South Korea CEX Listing Post-Mortem: Investing in New Coins = 70% Loss?

The 2025 South Korean exchange's new token listing performance is structurally similar to Binance's, with no significant differences.

BIP-360 Analysis: Bitcoin's First Step Towards Quantum Immunity, But Why Only the "First Step"?

This article explains how BIP-360 reshapes Bitcoin's quantum defense strategy, analyzes its enhancements, and discusses why it has not yet achieved full post-quantum security.

50 million USDT exchanged for 35,000 USD AAVE: How did the disaster happen? Who should we blame?

Due to a fatal flaw in the transaction path, a $50 million DeFi operation was executed with almost zero protection, resulting in nearly the entire amount of funds evaporating in a tiny liquidity pool.

The Cryptographic Past of the Middle East

Reality is often more exciting than fiction.

Resolving the Intergenerational Prisoner's Dilemma: The Inevitable Path of Nomadic Capital Bitcoin

When the baby boomer generation collectively sells off, who will become the "greater fool" in the next round of asset crashes?

Who Will Control AI? Why Decentralized AI May Be the Only Alternative to Government and Big Tech

AI has become critical infrastructure, and governments and corporations are competing to control it. Centralized development and regulation are entrenching existing power structures. The Web3 community is building a decentralized alternative — distributed compute, token incentives, and community governance — before that window closes.

Popular coins

Latest Crypto News

Read more