Fed’s Gradual Money-Printing Phase Looms - Lyn Alden’s Bold Prediction for 2026
The Federal Reserve is gearing up to quietly restart the printing presses—just don't call it quantitative easing.
The Slow-Drip Strategy
Lyn Alden, the macro analyst who called the last two liquidity cycles, says policymakers will phase in stimulus through backdoor channels. They'll avoid the fanfare of pandemic-era programs, opting instead for measured balance sheet expansion. The goal? Prevent market panic while quietly debasing the currency.
Digital Assets Stand Ready
When central banks flood the system with cheap money, hard assets historically win. Bitcoin's fixed supply looks increasingly attractive against fading dollar credibility. Smart contracts bypass traditional finance's gatekeepers—no approval needed for the next wave of liquidity.
The Institutional Pivot
Watch pension funds and corporates accelerate digital treasury allocations. They're not buying the 'transitory' narrative anymore. Real yields stay negative, forcing capital toward alternative stores of value. Crypto's volatility becomes a feature, not a bug, in this environment.
Finance's oldest joke gets a 2026 update: The Fed will print until it works, then print some more because it worked. Digital assets aren't just hedging against inflation—they're betting against monetary competence.
Markets remain unsure about interest rates before the Fed meeting
Interest rate policy is a major factor in financial markets (cryptocurrencies included). When interest rates are low and the money supply is high, many investors turn to riskier assets in search of higher returns. That can drive up prices of stocks, crypto, and other investments.
Then, when interest rates are higher, and it’s more difficult to borrow money, asset prices can slow or fall. Recent market research indicates mixed hopes regarding the Fed’s next move. Roughly 19.9% of traders say the Fed will cut rates next month at its next Federal Open Market Committee (FOMC) meeting, according to CME FedWatch.
That’s lower than 23% who had anticipated a rate cut only days previously, indicating waning confidence in the prospect of near-term easing. Federal Reserve Chairman Jerome Powell has shown caution and at times sent mixed signals about future policy. The Fed cut interest rates several times in 2023, but Powell has cautioned that inflation risks persist.
At the same time, he expressed concerns about employment. This illustrates very clearly how delicate a balance the Fed must maintain. Powell said he believes that after the December Federal Open Market Committee meeting, inflation risks remain tilted upward, and employment risks are tilted downward.
Fed leadership transition increases market uncertainty
The change in governance at the Federal Reserve is another factor shaping market expectations. Powell’s term as Fed chairman is set to expire in May 2025, and Kevin Warsh has been nominated as a possible successor.
But Warsh has not yet been confirmed by the Senate, leaving uncertainty over the future direction of monetary policy. Different Fed leaders can have different priorities. Some advocate a tighter policy to tame inflation, while others advocate a looser policy to boost growth and employment.
Investors pay close attention to leadership changes because they could impact interest rates, liquidity, and broader market conditions. But even as uncertainty continues to loom, Alden’s outlook suggests the Fed won’t increase the money supply by much in the foreseeable future.
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