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Understanding the Fed's Stealth Treasury Purchases and Bank Deregulation: A Catalyst for Liquidity Unleashed As of November 27, 2025, the Federal Reserve 's recent actions—coupled with accelerating bank deregulation under the Trump administration—represent a pivotal shift toward fiscal dominance in U.S. monetary policy. This isn't overt quantitative easing (QE) but a "stealth" version: subtle balance sheet expansions via repo operations and targeted Treasury buys, enabled by regulatory relief that frees banks to hoard unlimited risk-free Treasuries. The result? Lower effective rates without explicit Fed rate cuts, a massive liquidity surge, and a high-probability "meltup" across risk assets like stocks, Treasuries, crypto, and gold. John Williams, President of the New York Fed, signaled this transition in speeches on November 7 and 12, stating the Fed "may soon need to grow its balance sheet through bond purchases" to maintain "ample rese...