Michael Burry warns Fed’s RMP is a stealth QE move, hiding banking system cracks. The Fed plans to buy $40 billion in short-term Treasuries over 30 days to stabilize the repo market. Burry says the need for this, despite $3 trillion in reserves, shows underlying fragility. On-chain trading signals suggest market unease, with 2-month Treasury yields up and 10-year yields down. Traders are watching for more trading signals as end-of-year liquidity risks build.

Based on TechFlow, Michael Burry, the real-life inspiration for 'The Big Short,' has issued a strong warning about the Federal Reserve's latest Reserve Management Purchases (RMP), calling it a covert form of quantitative easing (QE) aimed at masking vulnerabilities in the U.S. banking system. The Fed announced plans to buy $40 billion in short-term Treasuries over 30 days to maintain liquidity, following a period of market volatility in the $12 trillion repo market. Burry argues that the need for such intervention, despite over $3 trillion in bank reserves, signals systemic fragility rather than strength. Market reactions, including a rise in 2-month Treasury yields and a drop in 10-year yields, reflect ongoing concerns about end-of-year liquidity risks.Source:Show originalDisclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.