Monetary policy: how central banks move markets
Interest rates, QE, and balance sheet operations aren't just abstract policy — they're the primary drivers of asset prices. These articles break down what the Fed, ECB, and other central banks are actually doing and why it matters.
Even As Central Banks Bought Gold, The Market Analysts Remained Bearish
In July I wrote a primer on the mechanics by which the Fed steers the prevailing interest rates in the economy.
Gold as a percentage of balance sheet size in Central Banks (ranked):
So the Fed will fully resume Treasury purchasing, as a part of their balance sheet expansion starting December 1st 2025
watch the Fed's projection dot plot, not the Fed Funds rate
there will NOT be a 50 bps rate cut
it's not just the Fed, the ECB is also lowering rates into higher inflation
repo rates increase and borrowing decreases in quarter-ends
it's NOT yet the top of the cycle for equities, cryptocurrencies and other risk assets. here’s why
here's what yield spreads are saying about Bitcoin
by "central bank" I'm frequently referring to the broader set of the legal framework behind the macro monetary policy
central banks will continue to buy gold #2
How Does the Federal Reserve Set Interest Rates?
the FED left the interest rates unchanged - at the 4.25%-4.50% target
🇷🇺 Russian Central Bank key interest rate is at 21% #2
🇷🇺 Russian Central Bank key interest rate is at 21% #1
🇨🇳 china's central bank uses USD value as a key driver in economic policies #2
🇨🇳 china's central bank uses USD value as a key driver in economic policies #1
🚨FED just injected $11B of liquidity #2
🚨FED just injected $11B of liquidity #1
central banks will continue to buy gold #1