**[The Biggest Focus of the Fed This Week: Not Rate Cuts, But Whether It Will Inject New Liquidity Into the Market]** BlockBeats News, December 8 – Although the market seems to have taken another Federal Reserve rate cut as a foregone conclusion, pushing U.S. stocks to near historic highs last Friday, the real driving force behind the bull market in stocks and other risk assets this week may not come from interest rates. After quietly halting quantitative tightening, how the Fed manages its massive balance sheet and whether it injects new liquidity into the market is the key issue. The global rates strategy team at Bank of America stated last Friday that they expect the Fed to announce this week that starting in January, it will purchase Treasury bills with maturities of one year or less at a pace of $45 billion per month as part of its "reserve management operations." Others believe this may take more time and that the Fed may not need to take significant action to keep the market running smoothly. Roger Hallam, Global Head of Rates at Vanguard Fixed Income Group, expects the Fed to begin purchasing Treasury bills at a pace of $15 billion to $20 billion per month by the end of the first quarter or early in the second quarter of next year. Kelly from PineBridge expects the Fed to cut rates by another 25 basis points on December 10, bringing the policy rate to a range of 3.5%-3.75%, moving closer to the historical neutral rate of around 3% aimed at maintaining economic stability. (Jin10)