Federal Reserve Summary (12/10/2025)

1. 25 bps cut for the third time in 2025
Impact: 🟠
It was expected and already priced in. It does not change the market by itself.

2. Powell says cuts could stop
Impact: 🔴
Stronger message. No promise of further cuts. Short-term weakening.

3. Division within the Fed
Impact: 🔴
Members disagree on whether to cut or not. Signal of internal doubts. More volatility.

4. Monthly T-Bill purchases: 40,000M in 30 days
Impact: 🟢
This is the important part. It’s not official QE, but it injects liquidity into the system and typically supports risk assets.

5. Economic projections: GDP rises, inflation drops
Impact: 🟢
Better growth and lower inflation. The stagflation idea is fading. It’s positive.

Conclusions:

The 25 bps cut was irrelevant because the market had already discounted it.

The key point is that the Fed is starting to inject liquidity month by month by purchasing T-Bills. Although they present it as reserve management, it ultimately results in more money within the system.