đ¨ Not QE, Just Less QT. Not Fed and Trump -> Fed and Truth
The FED has kept interest rates steady at 4.25% - 4.5%, marking the third consecutive meeting since January where theyâve held firm.
"In support of our goals, today the Federal Open Market Committee decided to leave our policy interest rate unchanged."
Thereâs been a lot of chatter out there, with some calling this "QE" (Quantitative Easing).
But maybe the truth is not QE. What the FED is actually doing is less QT (Quantitative Tightening).
As their bond holdings mature, theyâre reinvesting most of them to keep their balance sheet from shrinking too fast.
The key point? Their balance sheet isnât increasing - itâs just not shrinking as quickly as before. No big expansion, just a bit of a slowdown in the tightening process.
