Fed Cuts Interest in 25bps and Connects the "Printer" on December 12 – The Quantitative Tightening (QT) Died Today!

Igor Pereira · December 10, 2025

The Federal Reserve has just confirmed market expectations with a cut of 25 basis points (0.25%) at the interest rate. However, the real bomb — the detail that will change the market structure to 2026 — was hidden in the operational statement: the Fed officially stated that it will start buying Treasury bonds (Treasury Bills) from December 12.

By Igor Pereira, Financial Market Analyst, Junior Member WallStreet NYSE

Igor Pereira: That's "QE" disguised.

Don't be fooled by the technical language of "reserve management". By announcing the purchase of Treasury bonds, the Fed is effectively:

Closing Quantitative Tightening (QT): The era of draining liquidity from the system is over.
Starting Liquidity Expansion: They are injecting new money into the banking system to prevent the Repo market (system plumbing) from holding, as we have warned in our previous reports on SOFR volatility.

Why Now? The Fear of Break

The fact that the shopping program starts almost immediately (December 12th) signals urgency. Fed saw the signs of stress in bank financing and blinked. They would rather risk rekindling inflation than allowing liquidity collapse at the end of the year.

Immediate Impact on Markets:

The amount of assigned revenue in accordance with Article 21(3) of the Financial Regulation. Possible scenariobullish. Liquidity is the oxygen of markets. With Fed buying bonds, the central bank's balance sheet is growing again.
Gold (XAU/USD): The thesis of monetary devaluation ("Debasement Trade") has just been turbocharged. The Fed will print money to buy government debt. Possible turbo mode in Gold.
Dollar (DXY): The long-term trend weakens. Print dollars to buy debt dilutes the currency.

Conclusion: Don't fight Fed when he's expanding the swing. The age of managed liquidity has begun.

We have just received the operational detail that the institutional market was waiting for: the Federal Reserve will not just "start" buying titles; they will flood the system. The Fed announced the purchase of $40 billion in Treasure Bills in the next 30 days.

The Reading of Igor Pereira: This number is in top of the most aggressive projections (like the UBS). It is not a timid technical adjustment; it is a massive liquidity intervention. $40 billion in a month is an annualized rate of almost half a trillion dollars. The Quantitative Tightening (QT) not only ended; it was violently reversed. The Fed is refueling the banking system's reserve tank at emergency speed.

The scenario of 2026: Swaps Still See Cortes

As liquidity enters the balance sheet side, the Fed Swaps market maintains the expectation of around 50 easing points (cuts) in 2026.

Divergence: The market sees modest cuts in the rate officialBut the Fed is delivering massive stimulus via balance sheet. For risk assets and precious metals, the balance sheet imports more than the nominal interest rate.

The Trump Factor: "Just wait..."

The comment "Just wait until Trump is done with the Fed" is the geopolitical key. With the impending appointment of a new President of the Fed aligned with the White House (as we discussed earlier), this $40 billion injection may just be the "appetizer". Trump's agenda historically favors low interest and competitive dollar. If the Fed is already printing $40 bi/month under Powell, under a new "Trumpist" leadership, monetary policy can openly become expansionist to finance growth and debt.

Strategic Conclusion: The printer's on. The government wants to inflate the debt.

Gold/silver:"PREMIUM"
Dollar: Long-term dilution is inevitable.

Want to take your analysis to the institutional level?

This analysis is just the tip of the iceberg. ExpertFX School Premium Members Receive daily insights, premium analysis in-depth and Direct access to our closed group on Telegram, where we discuss the market in real time.

Don't operate on noise. Operate based on intelligence.

Access your dashboard and become Premium now: https://expertfxschool.com/dashboard