Federal Reserve minutes confirm QT ends

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On Tuesday, February 19, the Federal Reserve issued a record of their meetings, and revealed that centered bankers are thinking at the end – or at least a great slowdown – to quantum tightening (QT). The document states the following: “Many participants suggest stopping or slowing the reduction of the public budget pending a debt ceiling solution.”

These statements have fueled optimism between bitcoin experts who look at the potential end of QT as a bullish sign. Many believe that it is an introduction to the increase in liquidity that enters the financial markets, a case that has historically benefited from the origins of risk such as cryptocurrencies.

The recently published minutes confirm that some federal reserve officials are concerned about the interaction between reducing the ongoing public budget and the discussion that is looming on the ceiling. The possibility of issuing the US cabinet on a large scale as soon as the debt ceiling is resolved as a major motor behind the calls to stop or stop the QT.

The effects of bitcoin

The famous market suspension and podcast host on the margin, Felix Juvenile, took to X to emphasize the importance of the Federal Reserve Sign. writing: “There, QT is approaching this spring. Remember that every member of FOMC must unanimously agree to these minutes, and this is intended.”

While Jauvin emphasizes the consensus behind these minutes, it stops predicting an immediate shift towards QE. Instead, it indicates a specific series of events that the Federal Reserve seems to move.

The Federal Reserve has already reduced the surface flow of the public budget by half compared to the initial rate. Jauvin also notes that with the approaching re -rhuo -re -route (RRP) approaching zero and the federal reserve reaches the target reserve level of about 3 % of GDP, the QT end is more likely.

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Moreover, fears looming on the horizon at the expense of the general treasury (TGA) is likely to be rebuilt once the debt ceiling is resolved, which leads to the issuance of the large bill that may lead to temporary disturbances in the financing markets.

Therefore, instead of the axis to QE, Jauvin believes that the Federal Reserve can continue to exempt the complementary lifting rate (SLR), allowing commercial banks to absorb additional government debts. “It is very far from any form of formal quantity. Instead, they are likely to continue an SLR exemption that allows commercial banks to be the marginal buyer of debt.”

Jauvin concluded an official return to QE, which will not be achieved unless the financial and economic conditions deteriorate significantly, including a major collapse in the origins of risk and low zero rates near scratch. In response to the X user asks whether the qt end is bullish without necessarily referring to an immediate step to QE, Jauvin gave a brief explanation:

“So, think about the current liquidity background, it is improving marginally in that it will have a possible sequence of TGA to QT that ends up with an exemption from SLR, and it will be at the present time. QE should not be in the current vocabulary of the discourse as it is.”

The famous encryption analyst Bentusi ConsistentlyWith highlighting forecasts previously published: “QT reaches its end … My guess, QT ends with the start of Q3. With everything that is currently happening, Trump will end up forcing him. It was true on QT guess on November 21. Let’s let us We see.

He pointed to how the conclusion of the quantitative mitigation coincided in late 2021 at the end of the oxation of the encryption bull. Now, market observers are strongly monitoring whether the possible completion – a possible completion of the QT – has sparked a renewed momentum for Bitcoin and other digital assets.

At the time of the press, BTC was traded at $ 97,208.