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A comment on Coordinated central bank action to enhance the provision of US dollar liquidity. Parent comment

Re:Coordinated central bank action to enhance the provision ... by lowkey on Sunday March 19, 2023 @08:52PM (#35225720)
They might call it something else but the effect is the same as QE. The FED’s balance sheet has expanded by $300 billion in the past few days [0]

[0] https://mobile.twitter.com/charliebilello/status/16364798793...

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Re:Coordinated central bank action to enhance the provision ... by HDThoreaun on Sunday March 19, 2023 @09:34PM (#35226153)
That's not what QE is and it does not have the same effect as QE.
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Re:Coordinated central bank action to enhance the provision ... by lowkey on Sunday March 19, 2023 @09:36PM (#35226168)
It’s a sudden expansion of the Fed’s balance sheet. What else would you call it?
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Re:Coordinated central bank action to enhance the provision ... by HDThoreaun on Sunday March 19, 2023 @09:39PM (#35226192)
A loan to provide liquidity. QE is the systematic increasing of bond values. These loans will have no effect on bond value and therefore interest rates because they have high interest rates and need to be paid back quickly. They just give debtors enough time to sell a few assets and wait for the situation to calm down.
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Re:Coordinated central bank action to enhance the provision ... by lowkey on Sunday March 19, 2023 @09:46PM (#35226239)
See my edited comment above. The effect is to erase the past 4 months of quantitative tightening in a single week. We can agree not to call it QE but the effect is nonetheless inflationary as with all cases when the Fed creates money out of thin air, thereby diluting the purchasing power of all dollar holders.
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