Strategist: The Fed to Finally Add Liquidity Ahead of December Meeting Due to Ongoing Pressure
BlockBeats News, October 31st, the absence of direct response to recent market pressure has triggered active trading of SOFR futures - Federal Fund Rate basis swaps, while other rates in the repo market remain elevated. Wall Street strategists warn that with reserve shrinkage and more Treasury bill issuance injecting collateral into the market, funding pressure will persist until November.
Mark Cabana, head of U.S. interest rate strategy at Bank of America, stated that the ongoing pressure will eventually force the Fed to add liquidity ahead of the December meeting.
"The Fed's choice to remain passive in liquidity injections may be due to its belief that the current funding pressure is temporary," Cabana wrote in a client note, "but we think this is unlikely. As quantitative tightening continues, funding pressure is likely to persist and intensify." (FX678)
You may also like

The large models in the United States are moving towards closure in the name of security

Morning Report | CoinEx becomes a key hub for Iran to evade sanctions, involving over $3.8 billion in funds; Kalshi seeks a new round of financing, with a valuation potentially rising to $40 billion

From the white-haired stock god to the billionaire fund mogul, the smart people shorting Nvidia are all getting rich using the same framework

Why do cryptocurrency projects always like to change their names?

Global Launch: As predictions become the most scarce asset in the AI era, Manadia is defining the next generation of the value internet

Who is footing the bill for the $64 billion accounting frenzy?

I never expected that the first application of AI x Crypto would be in security auditing

What is your view on Binance's competitive advantages?

ETH has entered a non-consensus phase, and the turning point is approaching!

The shift in the cloud of the air: from despising stablecoins a year ago to the high-profile entry of capital today

The survival dilemma of small and medium exchanges behind the withdrawal anomalies exposed by AscendEX

Why Is Bitcoin Falling Below $60K? 5 Key Market Drivers Explained
Bitcoin has dropped sharply amid ETF outflows, Strategy stock weakness, AI stock rallies, and changing Fed expectations. Explore the key forces driving BTC’s latest correction and what traders should watch next.

Bitcoin vs. Gold in 2026: Which Asset Performs Better in Different Markets?

Morning News | The draft amendment to the People's Bank of China Law aims to clarify the legal status of digital renminbi; South Korea will transfer about 40 unregistered virtual asset service providers to law enforcement agencies

The cryptocurrency industry has entered the "Show Me" era: merely relying on vision is no longer enough

Interpreting the Ethereum Foundation's new structure: Reaffirming self-sovereignty amid institutional trends

Former SpaceX engineer reconstructs the financial execution system using first principles

