Powell Didn't Imply Quantitative Easing, Most Have Misunderstood

Sagar Agarwal609 FollowersFollow5ShareSavePlay(12min)CommentsSummaryPowell’s remarks have been widely misinterpreted as a return to QE - the Fed is not buying Treasuries from the public.No deposits are being created for households, no cash is entering the economy, and no new spending power is being generated.The timing has nothing to do with easing and everything to do with April tax payments, which have historically drained $300–$500 billion from the banking system in a single month.While $40 billion per month sounds "big", only $20–25 billion is needed to keep reserves in equilibrium as the economy grows.With 350 bps of rate-cutting space, the Fed can ease via rates, making QE unnecessary unless policy rates approach zero. RyanJLane/E+ via Getty Images Following Chairman Powell’s press conference on December 10, 2025, significant and, in my view, misleading chatter pertaining to his remarks on purchases of shorter-term Treasury securities has gained a lot of traction. Many are callingThis article was written bySagar Agarwal609 FollowersFollowBuilding a high-income portfolio is about more than just buying superficially high-yielding assets, it also involves preserving and growing wealth over time. I come here as an investment analyst, not a financial advisor, with the aim of educating readers on how to do both. My focus will be on opportunities that, at a minimum, match the market's risk-return tradeoff and grow their capital base. That means not only identifying new opportunities but also warning investors about misleading ones. In addition, I’ll provide market and economic commentary when relevant.All of the above will be done with basic fundamentals in mind; for the clichéd but gospel-worthy reason that if the foundation of a building isn't strong, it can't become a skyscraper.As for my credentials: I bring nearly two decades of experience as a technical trader, fintech researcher, startup consultant, finance writer, and small business owner - supported by a graduate degree in economics and multiple post-graduate degrees in finance and business administration.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.