3min snip

Forward Guidance cover image

Michael Howell: "QE Is Coming Back, Big Time"

Forward Guidance

NOTE

The Fed's Plan to Buy Treasuries

The Federal Reserve will have to engage in real quantitative easing instead of shadow QE./nThe Fed will likely buy treasuries to fund debt, as there are limited options for buyers./nForeigners are unlikely to buy as much US debt, putting pressure on domestic sectors to buy at higher interest rates./nThe only viable option to avoid an unwinnable situation is for the Fed to buy debt, leading to structural monetary inflation.

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