192: Kevin Muir – ‘Whatever It Takes’—How Reserve Banks React to Economic Pressure
Chat With Traders
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The Effect of the Fed's QE Unlimited on the Market
Aaron Carroll: What does the Fed do if their injection of liquidity doesn't have intended reaction and has it had the intended reaction this far? The first one, the 700 billion, they didn't tie their hands about how much they would buy every day. They're always feeling their way along buying some, seeing what's happening to spread,. see what happens, buying some more tomorrow and they do that. In fact, I would say that the first one didn't have the effect that they wanted it to have because they were forced to come back with the second one which was QE Unlimited. There's nothing fundamentally stopping them because they are the issuer of the credit.
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