The Federal Reserve is set to inject $55.3 billion in liquidity starting tomorrow and running through February 12, using a mix of bond reinvestments and reserve purchases.
This kind of steady liquidity flow tends to ease financial conditions, reduce funding stress, and quietly support risk assets. While it doesn’t guarantee immediate price moves, it does improve the backdrop for markets by adding breathing room to the system.
For investors, it’s another reminder that liquidity — not headlines — often shapes the next trend.