Fed money printing returns: what reserve purchases mean

0:00The Fed just made a move that Wall Street insiders have been quietly positioning for and I've been telling you about for some weeks. But most recent investors still have no idea it's happening because they're calling it reserve management purchases. But let me translate that for you. It is money printing. Money printing is back. And if you're sitting on the sidelines right now, you could literally miss one of the biggest wealth building opportunities over the next 12 months. And if you're invested in the wrong assets, the wrong stocks, you might actually lose money where everybody else is making some.

0:30In the next 10 minutes, I'm going to show you exactly what the Fed just did. Not the noise and nonsense that mainstream media is telling you because they're only telling you half the story. I'm going to tell you why it matters more than any rate cut and the three moves that you need to make right now to position yourself ahead of the crowd because they are still far behind.

0:48My name is Felix. I'm an ex investment banker. I've been watching markets for many years. This down here is Winston who does all the smart sniffing around of research down here and people are worried sometimes so he's always so tired. Well, he hikes every single morning and plays with a pack of wild animals. That's why he looks like that. But in all seriousness, we've also founded the Goat Academy where we taught over 20,000 students how to beat the world at their own game. And I'm also the co-founder of tradevision.io where we give you institutional grade news and data to find and make better decisions.

1:18So our mission is very simple. We want to teach regular investors like you to stop getting fleeced. So what I'm about to share with you, it's not a theory from a textbook. It's actually happening right now in the market. And by the end of this video, you'll know how to potentially profit from it.

1:33So the Fed just made two major announcements. Everyone's talking about the first one, which is the rate cut by 0.25%, which is great. But the real story, which is what Wall Street's actually exacerbated, and it's what mainstream media just doesn't understand. The Fed announced they're restarting money printing. Money printing. They're buying government debt again. $40 billion worth starting December 12th.

1:57So rate cuts are nice. They make borrowing cheaper. But when you print money, you inject liquidity, money, fresh money flowing into the financial system. And that's exactly what they're doing again. So the Fed is once again creating money out of thin air, pumping it into the banking system. More money in the system means higher asset prices. It's literally economics 101.

2:17But the Fed is being very careful with their language here. They're calling this reserve management purchases. And if you watched my video two days ago, it's exactly what I said they were going to do. They're going to come up with a name that is so weird and opaque that nobody understands it. Everybody will focus on the rate cut. So they're saying this isn't money printing, this isn't QE, quantitative easing, but this is just technical bollocks to basically hide what they're doing. My rule is if it walks like money printing, if it quacks like money printing, it's money printing, right? Or QE as the Fed likes to call it.

2:50So the Fed wants to make sure there is enough reserves in the system, enough liquidity so banks can lend freely and markets don't seize up. For the past few years, the Fed's been doing the opposite. They've been shredding money after they went on a complete bender. It's a bit like going out, taking a pound of coke, and then going, well, we're going to take a little bit less from now on. That's essentially the equivalent there. I'm not sure how much YouTube's going to like that analogy. Sorry about that. Don't do drugs, children.

3:17But essentially, they were reducing their balance sheet, which is basically shredding money. It pulled about $2 trillion out of the system since 2022. But there have been warning signs. Rates have been spiking. Banks have tapped out the Fed's emergency lending facility. And the Fed was kind of like, I think we've done too much, we should start printing money again.

3:38So what have they announced? They're buying $40 billion in government bonds per month initially. They're creating $40 billion worth of US dollars per month. That's almost half a trillion a year. And they said the pace will stay elevated for a few months to offset big increases in non-reserve liabilities expected in April. Everybody fell asleep by the end of the sentence and everybody paid attention. And after that, apparently they're going to dial it back based on seasonal patterns. So they're just making a hogwash out of the whole lot.

4:10But the reality is once the Fed starts buying again, starts printing money again, it's really hard to stop. Remember 2019? They tried to undo the money printing and it didn't really work out very well. So history sure rhymes on this. In my opinion, they're going to be printing money all through 2026.

5:04Now there is something else that's important for you to understand. And then we're going to talk about what do we actually buy and what do we actually do with it. But a lot of people think this is overwhelming. This is information that's kind of hard to understand. I get it. I used to think the same thing. And it is. It isn't obvious because they cloud it in this random language. How do you make it more easy to understand? Well, you just get better at it. You just learn the skill of how to actually interpret this. It's not hard. It's not rocket science. You can learn that in a couple of weeks in my humble opinion.

5:35So how do you do that? Well, the way I did it, I can certainly tell you the way I did it is I had mentors. I still have mentors and they're guys who worked on Wall Street for 10, 20, 30, 40 years. And I asked them stuff and they give me answers in ways that I can understand them. And what we've created as part of the Goat Academy is exactly a mentoring programme, a mentorship programme where you get access to my mentors. You also get to see my watch list every week and stuff like that. But the core part really is that you get one-on-one mentorship from people who've done this and people who understand this.

6:05So if you want to potentially do that, you're interested in that, making 2026 the best year ever where you actually know what you're doing, you're confident, then you can book a call. It's a free call, phoenix.org/freedom, and be part of this final intake of the year.

6:20But to get back to the Fed, the rate cut wasn't unanimous. It was not even close. The vote was the most dissenting at a Fed meeting since 1988. I was 8 years old at the time. I have no idea what happened then, but we got three Fed officials who voted against the majority. But the crazy part is that they disagreed not in the same way. Governor Steven Myron wanted a bigger cut. A bigger cut. He thinks rates are still too high and the economy needs more life support. Kansas City Fed President Jeffrey Schmidt and Chicago Fed President Austan Goolsbee, well, they wanted no cuts. They were worried about inflation.

6:55And when you have dissenters on both sides, it tells you something. The Fed has no idea what they're doing. They're flying blind. Some think the economy is too weak, others think it's still too hot. So this division is unprecedented in modern Fed history. It happened literally three times in the last 30 years.

7:12And let's don't forget Jerome Powell's term ends in May 2026. President Trump has made it very clear he wants Powell out and wants someone more money printerish in there. He's going to cut rates aggressively. So Powell is in a tough spot. You cut too much, he looks like he's caving into political pressure. Cut a little and he gets replaced anyway. Well, he's getting replaced anyway.

7:35And then they release something every quarter. It's called the dot plot. It's basically a chart showing where each Fed official thinks interest rates will be in the future. It's the Fed's crystal ball, except the crystal ball is usually wrong. And the December dot plot shows the average Fed official, and they are very average, expect rate cuts to be where they are right now, which is not surprising. And for 2026, they are projecting rates will fall by just one rate cut for the entire year.

8:02But here's the problem. The market doesn't believe them. So before this meeting, the futures market, because you can trade these Fed numpties, it's true, they were pricing in, the market is pricing in way more cuts. Why? Because the market thinks the economy is weaker than the Fed admits. So what does it create? It creates uncertainty. And the market hates uncertainty. But when the direction becomes clear, it's obvious the Fed is going to keep cutting and printing. That's when you get explosive moves, typically much, much higher.

8:33So let's connect the dots, literally. Why is this massively bullish for stocks? In my opinion, it comes down to one word, liquidity, or money. When the Fed buys government bonds, they're basically printing money. They're injecting that money into the banking system. The banks now have more money. Banks will now lend more money and consumers can borrow more and we can all spend more and the money is going to find its way into stocks because banks don't like having money sitting around. That doesn't do anything. So they put it into stocks, into bonds, into real estate.

9:03And we literally have seen that movie multiple times. 2008, 2014, then the Fed launched QE1, 2 and 3, the S&P tripled. We've seen it in 2020. The Fed printed $5 trillion. Stocks went absolutely parabolic. You lot were all geniuses. Remember how that felt every single time? I felt like a

10:01Genius too, in fairness. I think we all, Winston was a real stock-picking genius. Anything you bought went up. So every single time the Fed expands its balance sheet, as they call it, basically print money, risk assets go up. Now just because the Fed's being cute about it and they're saying this is just reserve management, it isn't stimulus, well it doesn't matter what you call it. More money means higher asset prices.

10:25So is there a risk? Yes. Inflation. So if inflation goes up much, much more then it could well stop them from cutting rates. That's really the only risk. The Goldilocks scenario is moderate growth, falling inflation, and then you get this beautiful boom of money printing, falling rates, and hopefully AI will do something. But not all stocks are going to do equally well.

10:46So who's going to benefit most? In my humble opinion, it's growth stocks. It's tech companies. They tend to do best when we print more money. So basically stocks that have a lot of risk. Financials benefit from more lending. Real estate, utilities benefit from lower rates. And if inflation keeps picking up, my opinion it will, commodities and energy stocks stay bloody attractive.

11:08You've seen what happened to silver. Have you had a good year with gold miners? If you haven't, then well, you're missing out. In my humble opinion, not telling you to buy it now, but it's been a really good year for blue-blooded gold miners. Now, it's not all sunshine. Things could go wrong, right? Trump could appoint a Fed chair who betrays him and does the opposite of what he promised. Weirder things have happened. He appointed Jerome, the money printer, Powell, right, which is kind of funny.

11:35People are saying, "No, no, no. Powell is a Democrat." No, Powell is a card-carrying Republican. He's a member of the Republican Party. People don't seem to want to believe that, but it's just true. Trump appointed him.

11:48And then there is the recession risk. Now, in my opinion, that's a fairly minor one. You can admire my slippers. Why? Because the government is running a $2 trillion deficit and is very likely to just keep printing money. So you have midterms in 2026 and they're going to want to win it. So therefore, they're going to do everything in their power to make sure there is plenty of money gushing about around the system.

12:14That's me being a cynic. You might have a different political view on that. I respect that. Just I'm a cynic. You can't really do much with a cynic. The good thing with a cynic is we have very low expectations. We don't really expect things from governments, you see.

12:28But if you go back to what they're doing right now, reserve management or liquidity operations or some sort of fancy name, the end of the day, they're printing more money and that is bullish for risky assets. Been telling you about this for a while. If you've been paying attention, you're probably quite happy right now.

12:45If you haven't, well, you could do a couple of things. You could subscribe to the channel. Weirder things have happened. You could go and book a free call with prehn.org/freedom and actually learn more about what our mentorship programme looks like. It's a programme for serious investors and not for people who want to get rich by Friday because we actually teach you how it works so that you are independent and no longer need us. You can then spread that joy and that knowledge with people around you, your children and everybody else. That's really the goal.

13:18Now, what do we do with this information? Stay invested. Don't sit on the sidelines. Cash is terrible right now. Rates are going to come down. Cash is going to lose. So you want exposure to risk assets, stocks, real estate, maybe crypto if you're aggressive, whatever. But I would focus on quality stocks. I would focus on quality growth stocks. I would stay clear away from the meme stuff because the rubbish stocks eventually just carry more risk. So tech, software, AI related stuff, but just stay away from the garbage. That's really what I would recommend.

13:52We have a free community actually where we have a garbage filter. It's called Better Stocks GPT. That'll tell you whether a stock is garbage. You can check that out. There's a link down below, felix.org/resource. And then in there, you'll find a link to this thing called Better Stocks GPT, which is what I built. And it's got all the data of all the major stocks.

14:12But you may also want to be prepared for inflation. This is a double-edged sword here, right? Inflation is going to come and hit you in the face. So gold's been on fire, right? Gold's up massively since the Fed meeting. It's been up massively all year. Silver on an absolute tear. I think there are reasons to believe both are going to continue to outperform. Again, not telling you to buy it, just saying that's what I'm looking at. That's what I'm doing.

14:36And then keep looking at the data. The Fed is data dependent, which means they'll make up as they go along, right? Sorry, they will base it on facts, statistics, right? Lies, lies, and statistics. That's what I learned when I studied statistics. So, job reports, inflation data, GDP growth. That's kind of what you want to look at. Job reports, inflation data, GDP growth.

15:00And it could be that those data points are completely made up. Doesn't really matter. They're the data points that they're going to have to pretend to act against. The most important one there is just inflation. If inflation goes too hot, they are going to slow down and that won't be good for you and me if we have lots of assets. If you are somebody who has mostly a salary, you live paycheque to paycheque, you're going to want to hope that this inflation story is wrong and that inflation is going to come down because you're getting poorer every single day.

15:28But the big picture is that the Fed is back to printing money. They're calling it something weird. So position yourself accordingly would be my advice. What that accordingly is, you're going to have to decide yourself because I don't give you financial advice. I hope this has been useful. I wanted to give you a quick update here because I think this is that important.

15:48And if you're serious, book yourself a call, find out what mentorship would look like, how it's structured. As I say, it's for serious investors. It's probably not for complete newbies, although we do take complete newbies, but by that I mean you're going to need a little bit of a portfolio to make that actually make sense. So I wish you all the best. Take care.

16:08If you're an investor or even just a saver, what I'm about to reveal could either protect your wealth or leave you devastated because every single country on Earth is drowning in debt.