Fed liquidity may be a key market driver in intermediate term - Wolfe Research By Investing.com

The Federal Reserve has ended its quantitative tightening, a three-year practice of selling off Treasuries and mortgage-backed securities to reduce its balance sheet. This move, along with a recent interest rate cut, could significantly impact markets, especially as the government shutdown muddies the economic outlook. Analysts predict this shift could initially dampen investor mood, but markets are expected to focus on AI growth potential rather than liquidity changes.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.