Secrets of the Federal Reserve’s Unconventional Monetary Policy (Advanced Level) | William English

Ad blocking detected

Thank you for visiting We have detected you cannot see ads being served on our site due to blocking. Unfortunately, due to the high cost of data, we cannot serve the requested page without the accompanied ads.

If you have installed ad-blocking software, please disable it (sometimes a complete uninstall is necessary). Private browsing Firefox users should be able to disable tracking protection while visiting our website. Visit Mozilla support for more information. If you do not believe you have any ad-blocking software on your browser, you may want to try another browser, computer or internet service provider. Alternatively, you may consider the following if you want an ad-free experience.

Canadian Insider Ultra Club
$432/ year*
Daily Morning INK newsletter
+3 months archive
Canadian Market INK weekly newsletter
+3 months archive
30 publication downloads per month from the PDF store
Top 20 Gold, Top 30 Energy, Top 40 Stock downloads from the PDF store
All benefits of basic registration
No 3rd party display ads

* Price is subject to applicable taxes.

Paid subscriptions and memberships are auto-renewing unless cancelled (easily done via the Account Settings Membership Status page after logging in). Once cancelled, a subscription or membership will terminate at the end of the current term.

Crypto: Blockworks
June 10, 2024

Forward Guidance is sponsored by VanEck. Learn more about the VanEck Morningstar Wide MOAT ETF (MOAT) at

William English’s work at the Yale Program on Financial Stability:
William English’s co-authored new book, “Monetary Policy Responses to Post-Pandemic Inflation”:
William English’s co-authored Chapter on the Fed’s Balance Sheet:
William English’s 2012 paper on the rationale and effects of QE:
“Interest Rate Risk and Bank Equity Valuations”:

Follow VanEck on Twitter
Follow Jack Farley on Twitter
Follow Forward Guidance on Twitter
Follow Blockworks on Twitter

00:00 Introduction
01:31 Fiscal Policy & Monetary Policy Never Really Were Separated. But It Would Nice If They Were
03:49 Do High Interest Rates Dissuade Government Borrowing?
07:09 The Fed Doesn't Like To Discuss Fiscal Policy
09:53 The Fed's Balance Sheet Expansion of 2020 & 2021
13:57 The Effects of Quantitative Easing (QE), In Theory And Practice
18:59 I Don't Remember Us (The Fed) Thinking A Lot About Negative Interest Rate Policy (NIRP)
23:41 VanEck Ad
24:22 The October 2008 Decision To Allow The Fed To Pay Interest On Reserves Assisted the Implementation of Quantitative Easing (QE), Which Began ~1 Month Later
29:15 The Striking Thing About The Asset Purchases Was The Size"
32:32 Forward Guidance vs. QE: Which Is More Powerful, And Which Has More Knock-on Effects?
36:27 Forward Guidance Is More Powerful When Initial Market Expectations About Future Policy Rates Are Incorrect
44:37 Flexible Average Inflation Targeting (FAIT) Framework Adopted By The Fed In 2020
52:48 Fast QE & Slow QT = Secular Rise In Size of Fed Balance Sheet
57:27 Fed's Decision To Slow Pace of QT Was Due To Desire To Avoid a "Snafu" In Money Markets Such As In September 2019
01:02:36 The Bernanke Doctrine: Should Interest Rate Policy & Balance Sheet Policy Always Be Pointed In The Same Direction?
01:07:12 If Balance Sheet Policy Is Moving The Opposite Direction Of Interest Rate Policy, Does That Weaken The Signaling Impact Of Balance Sheet Policy?
01:11:50 Lowest Comfortable Level of Reserves (LCLoR)
01:19:34 Impact Of Interest Rate Movements On Bank Equity Valuations
Disclaimer: Nothing discussed on Forward Guidance should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.

The views or opinions expressed in the broadcasts are solely those of the individuals involved and do not necessarily represent those of INK Research and Canadian Insider.