Rebel Capitalist News Fed Starting QE SOON!! (Here's Why)
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Nov 17, 2025 The discussion kicks off with a preview of an upcoming Fed meeting, sparking concerns about quantitative easing. The New York Fed’s sudden convening of dealers raises alarm bells, shedding light on the intricacies of the standing repo facility. A stigma surrounds this facility, leading banks to avoid it despite rising repo rates, which reflect growing counterparty risks. Predictions abound regarding the Fed's imminent return to QE, signaling potential market control amid increasing distrust. The conversation urges listeners to embrace and defend free market principles.
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Standing Repo Acts As A Rate Ceiling
- The standing repo facility functions like a discount window to cap short-term rates.
- It's intended as a ceiling counterpart to reverse repo's floor on money-market rates.
Fed Seeks Dealer Cooperation To Remove Stigma
- The Fed worries stigma will undermine its control of short-term rates if banks avoid the facility.
- Officials have solicited dealer cooperation to normalize standing-repo use and remove stigma.
Tri-Party Spikes Show Real-Market Stress
- Tri-party repo rates rising above Fed rates show real-market stress beyond Fed controls.
- These spreads mirror trends seen before the 2019 repo disruptions.