Federal Reserve Unveils Aggressive Bond Purchases Ahead of FOMC Meeting
The Federal Reserve has initiated its most substantial three-year bond-buying program since 2021, deploying $20 billion daily to address liquidity concerns ahead of the May 7 FOMC meeting. This echoes crisis-era strategies last seen during pandemic market interventions.
While focused on traditional markets, the liquidity surge carries indirect implications for digital assets. Cryptocurrencies often exhibit heightened volatility during periods of monetary expansion, as investors weigh inflationary hedges against risk appetite.