The Federal Reserve (Fed) concluded its final policy meeting of 2025 early this morning (11th) Taiwan time. As widely expected by the market, the Fed lowered the target range for the federal funds rate by 25 basis points (1 baci), from 3.75%-4.00% to 3.50%-3.75%. This is the third rate cut since 2025, maintaining a gradual easing pace.
The printing presses are back on!
The 25 basis point rate cut had already been fully priced in by the market, and was hardly a surprise. However, what truly caught the attention of Wall Street and global investors was a separate statement that followed: the Federal Reserve announced that it would launch the Reserve Management Purchases (RMPs) program starting December 12, 2025 (this Friday). The first wave would involve purchasing approximately $40 billion in short-term U.S. Treasury securities (T-bills) in the secondary market within 30 days, and the pace of purchases would remain high in the coming months.
Wall Street traders and analysts almost unanimously interpreted this move as "the printing presses quietly restarting." User @TheCryptoLark commented:
The Federal Reserve's purchase of short-term Treasury bonds is essentially injecting liquidity into the market. This is a form of implicit quantitative easing; the printing presses have only just begun to heat up!
