Is the Fed’s $40B Treasury Bill Program Really a Return to Monetary Stimulus?

TLDR: Fed Treasury bill purchases are designed to maintain ample bank reserves, not stimulate growth or inflate assets. The current liquidity operations mirror the 2019 repo market response, which produced no lasting inflation. Interest rate cuts and balance sheet operations are separate tools with different goals and market effects. Monitoring the Fed’s H.4.1 data provides [...]

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