Jerome Powell: Back Door Man

Jerome Powell: Back Door Man

I realize that Fed Chair Powell said it will be a couple of years before the Fed eases rates. I would be thrilled if the Fed maintained a tight policy stance, although I would prefer more focus on QT and less effort on the Fed Funds Rate (related article HERE).

Powell will face immense pressure to ease next year – an Election year – from the Bidenistas. Further, China has stimulus plans and our military will pressure the Administration to keep pace – regardless of what may be baked into whatever disaster of an omnibus spending bill that looms ahead.

Fed Chair Powell has already eased monetary policy via the Fed’s recent bank bailout known as the Bank Term Funding Program – which amounts to a back door QE program. The Fed has been in QE mode since March 2023.

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