Quantitative easing (QE) dead and buried? You may soon be in for a shock

It will not be called QE.  TOMO or POMO.

The US Federal Reserve is preparing the ground for a rapid return to net bond purchases, deeming it necessary to ensure sufficient liquidity for the financial system.

It will not be called QE. It will be deemed open market operations – TOMO or POMO in the obfuscating vernacular – and will be presented as a technical adjustment to manage bank reserves and the plumbing of the credit markets.

Mark Cabana, who managed QE at the New York Fed before joining Bank of America, says liquidity has dried up and the Fed will soon have to buy $150bn of debt to stabilise the money markets.

Can such action be justified amidst 3pc inflation, 3pc growth or more, a general government deficit of 7.4pc of GDP, and a galloping bull market on Wall Street? 

There are arguments both ways, but this has potent implications for global asset prices. It is certain to set off a blistering controversy.

Ambrose Evans-Pritchard Telegraph 30 October 2025

https://www.telegraph.co.uk/business/2025/10/30/is-the-fed-quietly-abetting-a-reckless-monetary-and-fiscal/


Centralbankerna tryckte pengar som galna

https://englundmacro.blogspot.com/2025/08/centralbankerna-tryckte-pengar-som-galna.html


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