Episode
QE Is Back and Asset Prices are going Higher
- Podcast
- The Pomp Letter
- Published
- Dec 11, 2025
- Duration seconds
- 213
- Processing state
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Summary
Today’s Letter is Brought To You by Abra ! Borrow up to 50% of the value of your crypto holdings with Abra in a highly flexible open term loan. Your collateral is held in a separately managed account where you retain legal title to the assets. Rates are highly competitive, ranging from 4-7%APY.No interest payments are required during the life of the loan. There are no minimums or maximum loan sizes.To learn more, click here . To set up an account, click here for individuals and here for entities. To investors, Quantitative easing is back. The Federal Reserve announced a 25 basis point cut yesterday, which brings the federal funds rate down to 3.50-3.75%. The vote had three dissenters, including two people who thought we should have left rates unchanged and Fed Governor Stephen Miran who wanted a 50 basis point cut. While the interest rate cut is important, it was consensus across Wall Street that the central bank would reduce the cost of capital by 25 basis points. The big surprise coming out of the two day meeting was the Fed’s announcement to restart balance sheet expansion with $40 billion in monthly Treasury bill buys. My friends at Geiger Capital put it best when they reminded us that Ben Bernanke promised in 2008 that QE was temporary and the Fed’s balance sheet would soon be lower than when they started. As you can see, the Fed’s balance sheet has continued to grow over time and now Jerome Powell is telling us that it is time to go back higher. This entire situation is highly unusual. Creative Planning’s Charlie Bilello outlined it perfectly : * Stocks: all-time high * Home Prices: all-time high * Gold: all-time high * Money Supply: all-time high * National Debt: all-time high * CPI Inflation: 4% per year since Jan 2020, 2x the Fed’s “target” * Fed: cut rates ag…