Nick Timiraos: The Fed Doesn't Want Bank Failures In The News
Forward Guidance
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The Fed's View on Quantitative Easing
The Federal Reserve's new tool, the bank term funding program, was announced two days after Silicon Valley Bank failed. It extends credit, short-term borrowings to banks in the same way the discount window does but they can do it for a duration of up to a year. And that's why people are saying, oh, this is quantitative easing again. But I think if you look at actually where's the liquidity going, and it's a big lent out, I mean, $100 billion inLiquidity is probably not getting recycled into the economy in formal loans or securities purchases. So I would answer your question in the negative that's not quantitative easing.
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