To QE or not QE, that is the question

Via FTAlphaville:

The Federal Reserve’s chair Jay Powell has been at pains to point out recent bloating of the bank’s balance sheet does not constitute fresh quantitative easing. Chart, via FRED:

Powell’s Fed views the expansion, which comes as the result of its purchases of short-term t-bills, as a consequence of its attempts to lower short-term money market rates. The purchases are intended to prevent a repeat of the spike seen in repo markets towards the back end of last year when the overnight rate soared to 10 per cent.

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