“Not QE” as Fed Trapped Between a Rock and a Hard Place

Commentary
“QE” or Quantitative Easing has been the bull’s siren song for the last decade, but will “Not QE” be the same?
Last week, amid a rash of bank insolvencies, government agencies took action to stem a potential banking crisis. The Federal Deposit Insurance Corporation (FDIC), the Treasury, and the Fed issued a Bank Term Lending Program with a $25 billion loan backstop to protect uninsured depositors from the Silicon Valley Bank failure. An orchestrated $30 billion uninsured deposit by 11 major banks into First Republic Bank followed. Those deposits would not occur without Federal Reserve and Treasury assurances.
The details of the Bank Term Funding Program were described in the Federal Reserve press release.
“The additional funding will be made available through the creation of a new Bank Term Funding Program (BTFP), offering loans of up to one year in length to banks, …