Why The Fed Is Doing QE Again When Inflation Is Still Elevated

Key Points The Fed is set to add about $200 billion of liquidity over the next five months—QE in effect—to steady repo and other short-term funding markets. QE is returning with core CPI near 2.8%, an Atlanta Fed GDP tracker around 3.5%, and a deficit near $1.8 trillion (about 6% of GDP). The pressure point […]