November 1, 2025

The Fed Squeeze Play: A Sign of Trouble Ahead?

After the Fed announced November rate cuts last week, the market seemed to end a lengthy quantitative tightening, shedding light on an apparent Fed squeeze play.

While many traders are hoping for lowering rates and have varying expectations on what this could mean for the economy, Scott Bauer is looking at the bigger picture.

He believes the quantitative tightening over the past 6-9 months could spark major volatility as expectations shift…

…and he’s seeing signs that Wall Street appears to be bracing for the same outcome.

Scott offered some sharp insights on the topic in his most recent MarketMinds episode, explaining the “squeeze play” that seems to be unfolding, and make-or-break factors that could be in play.

The analysis, insights, and strategies shared by Prosper Trading Academy’s coaches in Prosper Insider are strictly for educational and informational purposes only. All content reflects the personal opinions of the coaches and should not be construed as specific investment advice or recommendations. Any examples discussed are illustrative in nature and do not represent actual live trade signals or instructions to buy or sell securities. Trading involves risk, and individuals should carefully evaluate their own financial situation before making investment decisions.

Scott’s breakdown includes:

  • Details on the Fed squeeze play
  • The emerging signs of stress on Wall Street
  • Why the Fed is shedding assets off its balance sheet
  • The Fed squeeze play’s role in getting 30-year rates to their lowest levels in two years
  • Why this could be a sign there’s a short supply of money
  • How the Fed squeeze play is introducing volatility and pressuring asset prices

Watch the full episode

Sometimes in volatile markets, traders should consider small moves to target big gains…

Mike spent years fine tuning a powerful day trading system that’s delivered triple-digit results for five straight years—and more than 190%* in 2025.

His 3-step system is designed to help traders potentially hit their daily profit goals in under 1 hour…and with earnings season heating up, Mike believes it can help everyday traders take potential advantage of the huge moves he’s expecting to see in this market.

Tomorrow night at 8 PM ET, Mike is hosting a live walkthrough of his “1-Hour Trading Day System” to reveal exactly how it works.

Mike’s live training will cover:

  • The two repeatable patterns his system follows
  • How his system helps him find stocks poised for short fast potential breakouts
  • Trading tools Mike uses that help him cap losses and lock in potential gains
  • The dynamic edge his AI-powered “Pattern Finder” tool is giving to his system
  • Recent trade results reported from Mike and some of his students

Save your FREE seat to Mike’s live training

about the author:

Prosper Trading Academy

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