On December 1st, QT officially ended. On December 12th, they started buying T-Bills again (~$40B/month).
They call it "Reserve Management Purchases." I call it what it is: Stealth QE.
They changed the label because "Quantitative Easing" polls poorly with voters who pay $8 for eggs. But the mechanics are binary:
The Fed has shifted from pressing the brakes to quietly easing onto the gas. They are reliquifying the plumbing before the official "Money Printer Go Brrr" headlines hit the news.
If you are waiting for Powell to announce "Stimulus," you are the exit liquidity.
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The Fed is betting on your financial illiteracy.
On December 1st, QT officially ended. On December 12th, they started buying T-Bills again (~$40B/month).
They call it "Reserve Management Purchases." I call it what it is: Stealth QE.
They changed the label because "Quantitative Easing" polls poorly with voters who pay $8 for eggs. But the mechanics are binary:
The Fed has shifted from pressing the brakes to quietly easing onto the gas. They are reliquifying the plumbing before the official "Money Printer Go Brrr" headlines hit the news.
If you are waiting for Powell to announce "Stimulus," you are the exit liquidity.