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IPFS News Link • Federal Reserve

A Majority On Wall Street Are Convinced The Fed Is Currently Engaged In QE

• https://www.zerohedge.com by Tyler Durden

--T-Bills and the biggest Fed balance sheet expansion in 5 years (and the fastest on record) is not QE, two weeks ago we demonstrated that what the Fed is doing is, in fact, QE and not just according to sellside research but also according to the market, which ultimately is all that matters because if traders think the Fed is engaging in QE they will act accordingly... and lo and behold, the S&P is up 10 of the past 11 weeks since the Fed launched its T-Bill POMO, and the only week the S&P dropped was s when the Fed's balance sheet declined.

Furthermore, since the oh so convenient repo crisis, which as a reminder was started by JPMorgan to force the Fed to ease financial conditions, the Fed's balance sheet is now up over $377 billion, and considering the Fed may inject another $400 billion in the next month, we expect the Fed's balance sheet to hit an all time high some time in late January.


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