{"id":48970,"date":"2019-10-13T07:39:13","date_gmt":"2019-10-13T12:39:13","guid":{"rendered":"https:\/\/olduvai.ca\/?p=48970"},"modified":"2019-10-13T07:39:36","modified_gmt":"2019-10-13T12:39:36","slug":"is-powell-playing-fed-games","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=48970","title":{"rendered":"Is Powell Playing Fed Games?"},"content":{"rendered":"\n
\"U.S.<\/a>
U.S. Federal Reserve chair Jerome Powell speaks during a discussion at the Economic Club in Washington on Jan. 10, 2019. (SAUL LOEB\/AFP\/Getty Images)<\/figcaption><\/figure>\n\n\n\n

Is Powell Playing Fed Games?<\/a><\/h3>\n\n\n\n

The Federal Reserve will be adding assets to its balance sheet again, but Powell insists it\u2019s not \u201cquantitative easing\u201d<\/p>\n\n\n\n

The Federal Reserve will be adding assets to its balance sheet again, but Powell insists it\u2019s not \u201cquantitative easing\u201dJames GorrieWRITER<\/a><\/strong>October 10, 2019\u00a0Updated: October 10, 2019Share<\/p>\n\n\n\n

Apparently, the \u201crepo market\u201d purchases by the Federal Reserve we discussed earlier this week \u2014which don\u2019t<\/em> count as quantitative easing (QE)\u2014were just the beginning of the new, non-quantitative easing but money printing period.<\/p>\n\n\n\n

Fed<\/a> \u201crepos,\u201d you may recall, are now necessary to boost weak overnight liquidity reserves of the big banks and don\u2019t permanently expand the Fed\u2019s balance sheet, unless they go on forever, in which case they would be QE. Now they are more of a short-term bail-out.<\/p>\n\n\n\n

It\u2019s Time for \u201cNon-Quantitative Easing\u201d<\/strong><\/p>\n\n\n\n

But in his Tuesday speech, Federal Reserve Chairman Jerome Powell explained that for the first time in five years, the \u201ctime is now upon us\u201d<\/a> for the Fed to resume buying U.S Treasury bills and bonds. That means that come November, the American economy will officially enter into another period of quantitative easing, you know, the Fed buying assets to expand its balance sheet.<\/p>\n\n\n\n

Or not.<\/p>\n\n\n\n

Typically, when the Federal Reserve buys Treasury assets, it\u2019s because of weakness, either in the economy or in the financial system. A weakness that needs to be papered over by money printing, expanding the Fed\u2019s balance sheet and bank reserves. Or the Fed buys other assets that nobody wants to buy at a decent price, like the purchases of mortgage backed securities (MBS) it conducted after the financial crisis.<\/p>\n\n\n\n

 \u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"

Is Powell Playing Fed Games? The Federal Reserve will be adding assets to its balance sheet again, but Powell insists it\u2019s not \u201cquantitative easing\u201d The Federal Reserve will be adding assets to its balance sheet again, but Powell insists it\u2019s not \u201cquantitative easing\u201dJames GorrieWRITEROctober 10, 2019\u00a0Updated: October 10, 2019Share Apparently, the \u201crepo market\u201d purchases by […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[303,24417,16888,662,16350,2721],"class_list":["post-48970","post","type-post","status-publish","format-standard","hentry","category-economics","tag-fed","tag-james-gorrie","tag-jerome-powell","tag-quantitative-easing","tag-the-epoch-times","tag-us-treasuries"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/48970","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=48970"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/48970\/revisions"}],"predecessor-version":[{"id":48972,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/48970\/revisions\/48972"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=48970"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=48970"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=48970"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}