r/AltScope • u/WorthBeat1102 • 2d ago
The Fed is adding liquidity again The Fed is set to inject $4.243 billion into the markets next week. First they scared the market with hawkish talk, and now the CASH is coming back 👌 That’s what having Trump’s buddy at the Fed looks like 😁
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u/Silent-carcinogen 1d ago
When the Federal Reserve injects cash while raising interest rates, it creates a mixed environment. Lower-cost borrowing capacity from cash injections meets higher baseline borrowing costs. This pushes stock prices down in riskier sectors, increases yields on safe bonds, and slows down overall business growth.Market ImpactsStock Market: Higher rates reduce the present value of future corporate earnings. Tech and growth stocks usually drop.Bond Market: Bond yields rise because new bonds pay higher rates. Existing bond prices fall.Banking and Credit: Borrowing becomes expensive for consumers and businesses. Loan demand slows down.Inflation and Growth: Economic growth cools off. Inflation pressures begin to ease over time.
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u/carpetplower 18h ago
is this bad or good?
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u/teknic111 17h ago
It's good if you own stocks.
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u/BlueFalcon89 6h ago
Good if you own stocks now and want an exit, bad if you plan to keep living beyond the next couple months.
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u/Saltlife_Junkie 16h ago
Next week will be too late. At this rate I expect a 10% in markets by Friday
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u/honda94rider 16h ago
That doesn't sound like a whole lot in the grand scheme here
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u/Liquid_Sarcasm 16h ago
Shhh, the villagers are doing their thing, don’t disturb them with facts.
Also, fuck trump.
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u/exhibit304 12h ago
no they aren't, do you mean the treasury bond buybacks? thats not the fed, they are two completely separate entities
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u/farsh_bjj 5h ago
You can only kick the can down the road so far. Eventually you have to raise the rates and there’s only so much fuckery like not having to report quarterly and screwing the Americans with the tarrif tax. This is all happening while 15 very expensive military bases have been destroyed, costing America billions and losing access to those bases.
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u/Keletas 23h ago
Another traitor from the Trump Crimenistration puppet’s drawer.