Watch Live: Jay Powell Explains How The Fed's Saving Its Ammo For The 'Double Dip' Tyler Durden Wed, 12/16/2020 - 14:25 More of the same bond buying, more of the same lower rates, more of the same "not thinking about thinking about hiking rates", and more of the same begging for fiscal assistance as The Fed begins to realize it is nearing 'god-mode' levels of market distortion and the dollar is starting to know it... (and so is bitcoin). So Jay Powell will have to tread a fine line between wrecking the dollar's reputation and reassuring the world that he'll always be there to catch a dip. "I got this..." The Federal Reserve said it would keep buying at least $120BN of debt until “substantial further progress has been made” in the recovery, moving to strengthen its support for the US economy amid surging coronavirus infections. Fed turning much more optimistic on economy, yet not a hint of tightening. Expect many questions on this and no tangible answers. Crucially, MKM Partners' Michael Darda warned that: "If the neutral rate/velocity of money are rising, the Fed will be easing policy simply by standing still... In other words, by “doing nothing” the Fed is actually doing something..." This raises a question: Will the Fed actually follow through with this policy in 2021? In other words, will it allow this passive easing to continue once inflation starts rising next year? Hard to see a "Yes" in market forecasts and consensus forecasts for inflation . Which suggests: the Fed is saving QE twist for the double dip. Watch Live (due to start at 1430ET) Override Early Access On