From the Desk of Anthony Pompliano QE Again! Powell Is Pouring Gasoline On This Market Rally
Dec 11, 2025
The Fed's surprising restart of quantitative easing is sending shockwaves through the market. With $40 billion in monthly Treasury purchases, it's like jet fuel for already soaring asset prices. Anthony dives into the implications for investors as deflationary forces clash with monetary policy. He also highlights potential winners and losers from this strategy, and discusses the surge in tax refunds expected by 2026, which could boost household spending. Plus, he tackles the tough housing crisis and argues for deregulation as a solution.
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QE Returns And Market Liquidity Surge
- The Fed restarted QE with $40B monthly Treasury bill buys alongside a 25bps cut to 3.5–3.75%.
- This increases liquidity and mostly inflates risk assets like stocks, crypto, and real estate.
Asset Prices All At Peak Levels
- Multiple major asset classes and broad money measures sit at all-time highs as QE resumes.
- This unusual convergence makes the Fed's move especially potent for asset inflation.
Who Benefits From Balance Sheet Expansion
- When the Fed buys bonds, yields fall and investors chase higher-return risk assets, boosting borrowing and demand.
- Long-duration growth assets and hard assets typically gain most from lower rates and QE.