Memes

Fejau | Opinion: Why Quantitative Easing (QE) Isn't Coming Soon

> The Fed has only ever done QE when rates were already at 0. 

> Powell reaffirmed this by saying they'd never do QE unless rates were already at 0. 

> The Powell fed has made it clear they want monetary policy to be enacted through interest rates, not balance sheet. Therefore, if a crisis hits, the Fed will cut rates. 

> “Only outcome for QE is rates going from 4.5% to 0%”

Source: https://x.com/fejau_inc/status/1895601576779337912

Look, my reasoning for QE not coming soon is quite simple:

- The Fed has only ever done QE when rates were already at 0. Despite the narrative theres never been a moment otherwise, ever. 

- Powell reaffirmed this by saying they'd never do QE unless rates were already at 0. 

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