In Reply to: Supersized data centers are coming. posted by mh on December 15, 2025 at 12:10:34
Fed quietly starts QE, printing funny money
The Fed Is Buying Billions in T-Bills. Just Don’t Call It QE.
The Federal Reserve’s most important policy move this past week wasn’t the cut in its policy interest rate but the resumption of its purchases of Treasury securities.
The official line is that the central bank’s new buys of $20 billion of Treasury bills a month doesn’t represent anything other than ordinary management of money-market conditions. Some veteran Fed watchers aren’t so sure. In particular, the central bank purchases seem part of a coordination with the Treasury to help fund the massive U.S. budget deficit and tamp down longer-term bond yields.
Strategas’ Washington policy team, led by Daniel Clifton, estimates the Fed’s annual demand for $240 billion to $300 billion of T-bills would take up between 60% and 75% of the Treasury’s issuance of these short-term obligations.