After announcing the U.S. Federal Reserve would again start buying up large quantities of Treasury securities, Fed chair Jerome Powell clarified what was really happening during the post-announcement Q&A session: "This is not QE. In no sense is this QE."
The Fed is buying Treasury bills, bills are short-term bonds, bonds are assets, $60 billion per month is large scale and large scale asset purchases by the Fed used to be called quantitative easing. But we are being told this is not quantitative easing. What are we missing?
The chart below can be downloaded here.
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