The Federal Reserve has significantly reduced its bond-buying scale.

The Federal Reserve recently announced a reduction in its bond-buying scale. Does everyone still remember the liquidity crunch that occurred in the market at the end of last year, which led to a market decline?

At that time, the Fed began to stop quantitative tightening and shifted to purchasing short-term Treasury bonds, injecting liquidity into the market, thereby effectively maintaining stable market operations.

This time, the Fed has reduced its monthly bond-buying scale from $40 billion to $25 billion.

On the surface, this reduces liquidity injection, but on the other hand, it can also be interpreted as the Fed's confidence in the current economy and market liquidity. Moreover, after the news came out, U.S. bonds and stocks were not affected, which is enough to prove that the stage of greatest liquidity pressure has already passed.

$Invesco QQQ Trust(QQQ.US)$iShares barclays 20+ Yr Treasury Bd(TLT.US)$SPDR Gold Shares(GLD.US)$Sandisk(SNDK.US)$Palantir Tech(PLTR.US)$Intel(INTC.US)