Potential Secret Decarbonization by the US Federal Reserve: An Analysis
This article discusses recent reports suggesting that the US Federal Reserve (the Fed) may be engaging in hidden quantitative easing (QE), potentially through the purchase of US national debt. This analysis offers a personal perspective and does not constitute investment advice.
Identifying Legitimate Channels
It is important to note that the speaker's primary online presence is a YouTube account. Any claims of association with other platforms like WeChat, Bilibili, TikTok, Douyin, or private groups should be considered fraudulent. Information is disseminated exclusively through the speaker's official YouTube channel. Many people forward the speakers videos. Anyone asking to join a group with the speaker is likely a scam.
Reports of Federal Reserve Bond Purchases
Yahoo Finance reported that the Fed has been buying hundreds of billions of dollars in US national debt, particularly the 10-year and 30-year bonds. Trump had tried to get countries to purchase long-term national debt. Because countries are not buying or have insufficient demand, the Fed has stepped in. According to the May 17th report, this intervention appears to be a form of easing after a period of tightening.
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Last week, the Fed bought over 43.6 billion dollars in US bonds.
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They also bought 8.8 billion dollars of 30-year bonds in a single day.
Hidden QE vs. Official Policy
These purchases raise the question of whether the Fed is engaging in a "hidden" QE, especially considering it's simultaneously trying to reduce liquidity by $4-5 billion each month.
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Official QE is used during economic crises to inject liquidity and prevent investor panic. For example, this was done during the COVID-19 pandemic in 2020.
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Hidden QE is a less transparent approach, intended to stabilize markets and consumer confidence without alarming the public.
The motivation may be to avoid market panic or conceal economic difficulties. The Fed’s actions could be intended to stabilize the market without explicitly admitting to economic troubles.
Potential Risks in the US Bond Market
The US bond market, particularly in June and July, faces potential risks. There are concerns about the demand for long-term bonds. There is a risk in the 30-year U.S. debt because no one auctioned it, meaning, nobody wanted to buy the bonds. The long-term 10 and 30-year bonds have diminished "organic" demand, which is the natural conversion from trade surpluses into US dollar investments in the past. Foreign buyers are surrendering to not buying the bonds.
Stabilizing the Bond Market
The Fed may be acting as the "last buyer" of US bonds to prevent a bond market collapse. A rise in US national debt rates could trigger:
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A real estate market collapse due to high loan rates.
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Bank losses and potential failures due to previously low-interest rate settings.
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A credit market freeze due to excessively high-interest rates.
The Fed's intervention aims to prevent these scenarios by stabilizing the markets and preventing them from overstepping.
Implications for Bitcoin and Other Markets
Some believe that these actions, whether hidden or overt QE, will benefit Bitcoin due to increased liquidity. This could also be considered a normal operation of the United Nations (UN). The Fed has over 23 million US dollars. Purchasing more bonds could impact their GAP (Generally Accepted Accounting Principles). They must make money to sustain these purchases.
Historical Context and Comparisons
The U.S. Treasury engaged in similar easing measures, such as QE in 2021, to combat COVID-19. In May 2025, a $400 billion liquidity injection focused on medium-to-short-term markets, including a $20 billion investment in the three-year U.S. stock market. This is the first time since 2021. The QT (Quantitative Tightening) is happening again.
Conclusion and Outlook
The key takeaway is that regardless of whether the QE is hidden or official, announced or not, the focus should be on the injection of liquidity through bond purchases. The speaker is waiting for the United Nations (UN) to take down the H41 report to determine whether he bought the bonds as a daily operation. This transparency is important. The market seems to be stablizing. What remains to be seen is whether this becomes a daily operation and whether the Fed will maintain transparency about these actions. The current purpose seems to be to stabilize the national debt yield and the entire market behind it.