Market Maker Fed Rate Cuts, Wall Street Booms & Silver Goes Wild
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Oct 17, 2025 The impending Fed rate cut is set to shake up the markets, signaling a shift in the economic landscape. Major Wall Street players are celebrating record earnings, with deal-making making a comeback. Jamie Dimon's intriguing 'cockroach' comment raises concerns in private credit markets. Meanwhile, silver skyrockets to a 45-year high due to a dramatic short squeeze, leading to traders flying silver bars across the Atlantic. Tune in for a lively discussion on these pivotal market movements and more!
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Fed Signals Imminent Rate Cut
- Jerome Powell signalled a near-certain Fed rate cut in two weeks citing a softening labour market.
- The Fed prioritises employment risks over slightly higher inflation in this decision.
How QE And QT Changed The Money Supply
- Quantitative easing raised the Fed balance sheet to ~$8.7tn by buying treasuries and MBS to inject cash via banks.
- The Fed unwound much of COVID QE via gradual runoff but will likely pause QT soon.
Liquidity Signals And The QT Pause
- A few banks tapped the Fed's standing repo facility, signalling episodic liquidity stress.
- That partly explains why pausing QT is prudent to avoid credit-market strain.