As $TRUMP Trump prepares to nominate the next Federal Reserve Chair, the debate has shifted beyond interest rate cuts to a far more explosive question:
👉 Will the Fed restart large-scale liquidity injections (QE)?
💰 $6.6 Trillion Balance Sheet = The Real Power Lever
Where this massive balance sheet goes next has become the core of the political and financial chessboard.
⚖️ Two Camps, One Showdown
Waller pushes for balance sheet reduction, warning of “monetary dominance” risks — but faces criticism for clashing with White House priorities.
Reid and Waller allies favor maintaining liquidity and resisting further tightening.
📉 2025 Market Turmoil Changed Everything
The volatility of 2025 exposed the hidden risks of aggressive balance sheet reduction. In response, the Fed has quietly resumed bond purchases, injecting $40 billion per month back into the system.
❓ What Comes Next?
Continue draining liquidity?
Or reopen the floodgates with full-scale injections?
📊 Political Signals Are Clear While Waller’s odds are rising, the White House is pushing for a “rate-cut + liquidity-injection” aligned candidate.
⚡ Hawkish QT vs. Liquidity Expansion A monetary earthquake may be closer than markets expect.
#TrumpTariffs #NextFedChair #MacroWatch #CryptoMarketAlert #LiquidityCycle
