Fed Cut Looms as T-Bill Buying Eyed

Wall Street held steady into a likely 25 bps cut, while liquidity chatter and dealmaking set the tone for year-end positioning.

TL;DR:

🏦 Fed cut decision nears
💵 Fed may buy more T-bills
🤝 Goldman sees M&A momentum into 2026
📅 Today: Fed, BoC, China CPI

Wall Street Mixed Ahead of Fed Cut

Stocks were uneven as traders waited on the Federal Reserve, with a 25-basis-point cut widely expected and guidance in focus. Positioning stayed tight, mega-cap tech firmed, and bond markets leaned toward a gentle easing path into 2026. The tone hinges on Powell’s clarity about the pace and size of future cuts. Source

Fed May Ramp Up T-Bill Purchases

Markets flagged a potential shift toward larger Treasury bill purchases, which could support reserves and smooth front-end funding. A bill-heavy tilt would ease money market strains and temper short-rate volatility even as balance sheet runoff continues. Liquidity-sensitive assets and curve shape would react first to any surprise. Source

Goldman Sees M&A Momentum Into 2026

Goldman Sachs’ CFO said deal activity should accelerate into 2026 as rates ease and CEOs regain visibility. Stronger pipelines and improved board confidence point to more large-cap strategic and sponsor-led transactions. That backdrop favors advisory revenue and select cyclicals tied to corporate activity. Source

Today’s Watchlist: Fed, BoC, China CPI

All eyes are on the Fed’s policy call and press conference, with markets primed for a 25-bps move. The Bank of Canada also decides rates, while China’s CPI prints and IMF chief Georgieva speaks in Beijing—key reads on global demand and policy tone. The U.S. Employment Cost Index is due, rounding out labor-cost signals into year-end. Fed BoC & ECI China CPI IMF

Fed Expected to Announce 25-Basis-Point Rate Cut