Thoughtful Money with Adam Taggart SPECIAL REPORT: Did The Fed Just Announce QE-Lite? | Axel Merk + Live Q&A
32 snips
Dec 11, 2025 Join investment manager Axel Merk, a seasoned expert in macro and monetary policy, as he dissects the Federal Reserve's recent rate cut and its implications for the market. He posits that T-bill purchases signal a form of 'QE-lite,' diving into the significance of the ample reserves regime. Axel also explores inflation's driving forces, contrasting monetary and fiscal policies, and examines silver's recent rally. Plus, get insights on potential shifts in Fed leadership and the risks posed by AI on the labor market.
AI Snips
Chapters
Transcript
Episode notes
T-Bill Purchases Behave Like QE-Lite
- The Fed's planned T‑bill buys functionally act like a QE-lite by adding liquidity to maintain ample reserves.
- Markets respond to liquidity actions, not the Fed's rhetorical denial of QE, so buying short Treasuries eases financial conditions.
Ample Reserves Mask Market Stress
- The Fed's 'ample reserve' operating regime masks stress because it smooths liquidity instead of exposing pressure points.
- That regime causes political headaches and incentivizes paying banks to hold reserves rather than revealing system fragility.
Avoid Preannouncing Fed Votes
- Stop pre-announcing votes or anchoring meeting outcomes publicly because it reduces decision flexibility.
- New Fed leadership should reform communication to restore genuine data-driven decisionmaking.