Fed's Money Printing is About to Start — Melt-Up Will Accelerate
Published: 2025-11-25
Status:
Available
|
Analyzed
Published: 2025-11-25
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 5
Prediction
Topic
Status
The Federal Reserve is predicted to expand its balance sheet again soon.
"the Federal Reserve will soon need to grow its balance sheet again."
Correct
The Federal Reserve is expected to restart money printing in the near future.
"I expect that it's not going to be long before it happens."
Pending
The Federal Reserve is predicted to resume significant money printing in 2026.
"So, are we on track for the Federal Reserve to start their massive money printing again 2026? And I'm going to take an educated guess and say yes."
Pending
Quantitative tightening is scheduled to conclude on December 1st.
"Quantitative tightening ends on December 1st."
Incorrect
Quantitative easing is explained as a euphemism for money printing by the Federal Reserve.
"So I just want to clarify this so that we're all on the same page. Quantitative easing is another fancy way of saying money printing."
Correct
The speaker predicts that the Federal Reserve will resume money printing in 2026.
"So, are we on track for the Federal Reserve to start their massive money printing again 2026? And I'm going to take an educated guess and say yes."
Pending
The Federal Reserve's balance sheet has decreased from $9 trillion to $6.6 trillion over the past three years.
"So the Federal Reserve has been shrinking their balance sheet from $9 trillion down to 6.6 trillion."
Incorrect
Following the halt of quantitative tightening on December 1st, the Federal Reserve is expected to commence quantitative easing.
"Now they're stopping the tightening process completely on December 1st. And again, I'm taking the educated guess that they're going to start the quantitative easing, the QE process."
Incorrect
Jay Powell indicated that the Federal Reserve's reserves will need to begin growing gradually at some point.
"Jay Powell, who's the chair of the Federal Reserve, he said the same thing in October. He said that at a certain point, reserves will have to start growing gradually."
Correct
The Federal Reserve may need to purchase assets if repo rates continue to increase.
"If repo rates keep rising, the Federal Reserve will need to begin buying assets."
Correct
Evercore predicts the Federal Reserve might purchase up to $50 billion in assets monthly during the first quarter.
"And Evercore, one of Wall Street's most respected macro firms, said that the Federal Reserve may need to buy up to $50 billion per month in the first quarter."
Incorrect
The financial system's proper functioning is dependent on having adequate reserves.
"The financial system cannot function properly if there's not enough reserves."
Correct
A significant decrease in reserves could lead to a spike in repo rates and a collapse of money markets.
"if reserves are going to go down too far then the repo rates they're going to spike up and when repo rates spike up then the money markets are going to break."
Incorrect
The Federal Reserve is re-engaging not for economic stimulation, but to prevent the financial system's infrastructure from failing.
"So, yes, the Federal Reserve is stepping back in, but they're not doing it to stimulate the economy. No, they're doing it to keep the plumbing system from breaking."
Correct
Increased liquidity from the Federal Reserve is expected to result in lower real yields, higher valuations, and greater risk-taking.
"And the effect is going to be more liquidity in the system. It's going to be lower real yields, higher valuations, and increased risk taking."
Correct
The Federal Reserve's actions are perceived as stimulating an investment bubble.
"the the Federal Reserve is basically stimulating into a bubble."
Correct
Ray Dalio predicts that additional liquidity will inflate asset prices until severe inflation forces the Federal Reserve to aggressively tighten policy.
"Dalio expects that this additional liquidity is going to push up the price of investments just higher and higher until inflation becomes so severe and then the Federal Reserve is going to have to respond by just slamming on the brakes."
Correct
Ray Dalio predicts a market 'meltup' scenario.
"Dalio is saying that basically there's going to be a meltup."
Correct
Jerome Powell's term as Federal Reserve Chair is set to conclude in May 2026.
"Jerome Powell, who's the chair of the Federal Reserve, his term is expiring. It's going to be over pretty soon, May of 2026."
Pending
President Trump is predicted to select the replacement for the Federal Reserve Chair.
"And who's going to be the person that chooses his replacement? It's going to be President Trump."
Correct
A Fed chair aligned with President Trump's views is expected to lead to a more dovish Federal Reserve, with higher inflation tolerance, more aggressive rate cuts, and increased support for growth and liquidity.
"So what's going to happen when the next Fed chair aligns more closely with President Trump's views about monetary policy? then you can expect a more dovish Federal Reserve, more tolerance for inflation, a more you could say willingness to cut interest rates more aggressively, and more support for growth and liquidity."
Pending
The current economic and policy mix suggests a forthcoming market 'meltup'.
"I see that it's got meltup written all over it."
Pending
The Federal Reserve is preparing to inject liquidity into the system, referred to by various terms including money printing and QE.
"The Federal Reserve is warming up the money printers. You could call it QE, you could call it balance sheet expansion, reserve management, you call it technical operations, whatever you want to call it, doesn't matter. What matters is that liquidity is coming back into the system."
Correct
Following interest rate cuts and the cessation of quantitative tightening, money printing is expected to resume, leading to accelerating inflation.
"interest rate cuts come first and then they stop QT and then they turn the money printers back on and then of course inflation's going to reacelerate."
Pending
Each subsequent money printing cycle necessitates a larger injection of funds, with a prediction of a negative long-term outcome.
"every money printing cycle requires a greater quantity of money to be printed. You could you could think of it like an addict that requires a greater dosage and it's going to end very badly."
Pending
The market will react to Federal Reserve liquidity injections as stimulus, regardless of the terminology used, leading to higher valuations, lower yields, and increased risk-taking.
"When the Federal Reserve adds liquidity, even though they don't call it quantitative easing, they again they might call it some fancy other term, you know, this or that, but it's going to be quantitative easing. It's going to be money printing. It's all this different words for the same thing. So, even if they claim it's not stimulus, the market's going to react like it is."
Correct
Investors should accumulate positions during market pullbacks rather than chasing upward momentum during a meltup.
"You want to build your positions when there are pullbacks because it's not going to go up in a straight line."
Pending
In liquidity-driven markets, stocks, crypto, and precious metals are all expected to appreciate.
"in liquiditydriven environments, stocks can go up, crypto can go up, precious metals can go up."
Correct
Investors are advised to diversify across asset classes, suggesting that crypto investors consider precious metals, and precious metals investors consider equities.
"diversify some of that out. Like buy some precious metals. If you're hardcore about precious metals, you should really think about putting some money into equities. That's all I'm saying. Just stay diversified."
Correct
Even during a market meltup, investments will experience volatility, including pullbacks and downturns.
"Even in a meltup, your investments, they're not going to go straight up. There's going to be pullbacks. There's going to be ups and downs."
Correct
Using margin debt to invest in stocks or crypto can lead to complete loss of capital during a market downturn, preventing recovery when the market rebounds.
"If you borrow money to buy stocks or crypto, you know, that's going to be known as their margin debts. then you can get wiped out in a downswing and you're not going to be able to recover when it starts going back up."
Correct
A 33% decline in stock value can result in the loss of an entire $100,000 investment when margin debt is used.
"If you do that and your stocks go down 33%, then you're going to lose your entire $100,000."
Correct