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Coinbase: Federal Reserve's Invisible QE to Support Crypto Market, Policy Environment May Be Milder Than Expected
Summary: Coinbase Institutional announced on social media that the Federal Reserve's decision to cut interest rates by 25 basis points this week, along with its plan to implement government bond reserve management purchases within the next 30 days, can be seen as a positive signal. The specific details of the plan are as follows: - Initial ...
Coinbase Institutional announced on social media that the Federal Reserve's decision to cut interest rates by 25 basis points this week, along with its plan to implement government bond reserve management purchases within the next 30 days, can be seen as a positive signal. The specific details of the plan are as follows: - Initial operation size of $400 billion - Start date of December 12 This liquidity injection came earlier than expected, and reserve growth may continue until April 2026. The shift from balance sheet reduction to net injection by the Federal Reserve can be seen as a form of mild quantitative easing or invisible QE, which may support the cryptocurrency market. Combined with the reserve management purchase plan and expectations of two more interest rate cuts (totaling 50 basis points) in the first nine months of 2026 in the federal funds futures market, the policy environment may be milder than expected.
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Link: Coinbase: Federal Reserve's Invisible QE to Support Crypto Market, Policy Environment May Be Milder Than Expected [Copy]
