Stocks & Bond Yields Rise Modestly After Powell Unveils “Not QE”

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Stocks & Bond Yields Rise Modestly After Powell Unveils “Not QE”

Just minutes after Chicago Fed’s Evans’ comments that “certainly, asset valuations are quite high,” Fed Chair Powell unveiled a new balance sheet expansion program, to buy T-Bills, that should absolutely not be called QE4 – so we’ll call it “Not QE.”

Anyone who calls QE4, QE4, and not “not QE” is a Russian spy…

The initial reaction is very lacklustre – stocks and bond yields rose, gold initially spiked but fell back and the dollar is unchanged for now…

Stocks & Bond Yields Rise Modestly After Powell Unveils "Not QE"

Notably fed funds are basically unchanged too.

Stocks & Bond Yields Rise Modestly After Powell Unveils "Not QE"

Simply put, The Fed is basically all-in and markets have priced it in.


Tyler Durden

Tue, 10/08/2019 – 14:56

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