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FX weekly: The 50 B’s caused the downturn, so what about the 60 B’s?
In retrospect, can we all now agree that the Fed’s QT was not like watching “paint dry”, and that President Trump was right all along when he called on the Fed to “stop with the 50 B’s”? The Fed was in for a rude awakening in September, but has managed to calm money markets and is now working to put a more lasting solution in place. The recent announcement that the Fed will start buying T-bills at an initial pace of 60bn/month have caused enormous confusion among some market participants, for instance as it was described as a QE program comprising 510bn (a monthly pace of 60bn lasting 8.5 months). ... (full story)