Fed Resumes Asset Purchases Amid Inflation Concerns
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BTCCSquare news:
The Federal Reserve quietly restarted Treasury securities purchases this week, injecting $40 billion into markets. This pivot from quantitative tightening revives debates about inflationary risks as policymakers simultaneously cut rates.
Heritage Foundation economist E.J. Antoni warns the balance sheet expansion could undermine inflation progress. The MOVE coincides with the Fed's third 2025 rate cut, creating mixed signals about monetary priorities.
Market observers note the subdued announcement contrasts with potential macroeconomic consequences. Liquidity injections may pressure risk assets, including cryptocurrencies, as investors reassess Fed liquidity trajectories.
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