Don’t Call It QE Even if the Market Reacts Like It’s QE

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Federal Reserve Chairman Jerome Powell this week insisted that a plan to buy Treasury bills to build up excess bank reserves wasn’t the same thing as the central bank’s previous asset purchases, known as quantitative easing, or QE for short. Markets, however, reacted similarly to how they behaved during QE, with risky assets like stocks rallying and the Treasury yield curve steepening.Medley Global Advisors Macro Strategist Ben Emons and Bloomberg reporter Luke Kawa join the “What Goes Up” podcast this week to  discuss the significance of the Fed’s latest move.In response to the Fed’s strategy, people will say “OK, there’s a cushioning effect in the system,” says Emons. “I’m going to take perhaps more risk.”Mentioned in this podcast: A Repeat of 2018’s Rout Is Likely Coming, Veteran Investor Says Nonsense Market Moves Have Investors ‘Exhausted’ by Trade Talks

To contact the authors of this story: Sarah Ponczek in New York at sponczek2@bloomberg.netMichael P. Regan in New York at

To contact the editor responsible for this story: Topher Forhecz at, David Rovella

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