How a Potential Fed Shift to QE Could Impact Your Crypto Portfolio (Analysis)

• Fed Chair Powell expected to shift from QT toward QE focused on Treasuries
• Linked to Treasury financing needs discussed with Sec. Bessent; Hayes eyes summer
• Potential QE may support fiscal goals (deficit reduction, Trump trade policy)

Federal Reserve Chair Jerome Powell is expected to move toward renewed quantitative easing (QE), potentially focused on the U.S. Treasury bond market. This expectation follows a reported meeting between Powell and Treasury Secretary Scott Bessent in early March. 

In a blog post, BitMEX co-founder Arthur Hayes suggested Powell is preparing to scale back the Fed’s current quantitative tightening (QT) program. Hayes believes the Fed will support Treasury markets with new liquidity injections, possibly starting this summer.

Why the Potential Shift from QT to QE?

According to central banking observers, Bessent pointed out to Powell during their meeting that upcoming Federal Open Market Committee (FOMC) monetary policy decisions must align with the Treasury Department’s significant financing needs.

The March meeting reportedly raised the urgency of potentially resuming QE to help absorb the large volume of new Treasury bond i…

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