Just moments ago Jerome Powell the Chairman of the Federal Reserve just announced that the US central bank will expand the Fed’s balance sheet.
He said: “I want to emphasize that growth of our balance sheet for reserve management purposes should in no way be confused with the large-scale asset purchase programs.”
He then went on to say that the Fed is contemplating buying T-bill (US government debt) but this won’t be quantitative easing (QE) and that the Fed will be announcing steps to add to reserves over time. So if it looks like QE and it smells like QE maybe it’s not QE.
I feel this is a great piece of news for crypto lovers as they all know QE has lead to one of the greatest wealth divides in generations. A decentralised currency is surely the answer.
When QE started after the financial crisis the extra money was supposed to be used to prop up the economy but the easy money was used to lend cheaply to the big corporations to buy back their stocks and restructure their debts for less interest.
Now the Fed is citing technical factors for the next round of their balance sheet expansion. Whatever the reason it will surely move some more confidence away from traditional monetary means to the decentralised crypto world.
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