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Fed Chair Powell Tells Congress: Relax; the QE Is Not Going To Stop

Federal Reserve Chairman Jerome Powell testified yesterday before the House of Representatives Committee on Financial Services that the Fed will not change its over-the-top quantitative easing policy for the foreseeable future. He had said pretty much the same thing one day earlier to a Senate hearing, repeating the line that has dominated Fed policy for the last year or more. A foreign exchange strategist at the National Australia Bank, Rodrigo Cattrill, caught the gist of it: “The punch bowl ain’t going anywhere anytime soon and the policy backdrop should remain supportive for risk assets for some time.” Perhaps Cattrill should have referred to it as a Kool Aid bowl, to be more precise.