Economics
The Debate Over Whether to Call It QE Is Over, and the Fed Lost
- Powell says repo ops aren’t stimulus but stocks keep rallying
- Concern becomes what happens when the spigot is turned off
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In the court of investor opinion, the verdict is in. The Federal Reserve is guilty of quantitative easing.
Never mind that Chairman Jerome Powell tells everyone his efforts to shore up funding markets are “in no sense” QE. Try as policy makers may, they’ve lost the ability to convince people that Treasury purchases aren’t at least partially why the Dow Jones Industrial Average is up almost 4,000 points since late August.